Rachel Reeves 'warned by 2 different estate agents she needed rental licence'

Rachel Reeves was advised by a second estate agency that a licence was required before renting out her family home, it has been reported. The Chancellor has faced significant criticism after it emerged that her south London property was being let for around £3,200 per month without the necessary authorisation and seemingly in contravention of property law.

She initially told Sir Keir Starmer that she had been unaware that a licence was needed. However, further email correspondence later surfaced suggesting that her husband had discussed the licensing requirements with the lettings firm handling the property. The fresh revelation that Ms Reeves has been advised by a second firm adds further doubt to the Chancellor's earlier claim to the Prime Minister that she had not known about the licensing rules, as the matter appears to have been highlighted by two different letting agencies.

Before working with their lettings agency, Harvey & Wheeler, Ms Reeves and her husband had initially contacted the estate agency Knight Frank about renting out the property, and were informed at that stage that a licence would be required, The Mail on Sunday has been told.

Knight Frank spokesman said on Saturday night that informing clients about their regulatory and legal obligations when letting a property is a "standard procedure".

Sir Keir Starmer has previously criticised his Chancellor for failing to review the correspondence with the lettings firm before asserting that she had been unaware of the licensing issue, though he has maintained that no additional disciplinary steps are necessary. This has been confirmed by Sir Laurie Magnus, Sir Keir's independent adviser on Ministerial standards, who said he'd found "no evidence of bad faith".

In a letter published on Thursday night, the prime minister said correspondence shared by Ms Reeves later shows her husband had been assured by the couple's estate agents "that they would apply for a licence on his behalf".

However, following the latest information about advice from Knight Frank, the Tories are now demanding fresh action.

Shadow Treasury Minister, Gareth Davies said: "Each day brings fresh questions about Rachel Reeves' account. This latest revelation casts serious doubt on her claim not to have known about the need for a licence. Her story seems to shift with every explanation.

"The Prime Minister must now get to the bottom of this and order a full investigation without delay."

Ms Reeves submitted her licence application on Friday. Under the regulations, not having the required licence can constitute a criminal offence. Possible penalties include an unlimited fine if prosecuted, a civil penalty of up to £30,000, or an order requiring repayment of up to a year's rental income - which, in her situation, could amount to nearly £38,000.