The recent case involving Labour’s Rachel Reeves and her unlicensed Southwark rental property has ignited a critical debate about the complexity and inconsistent enforcement of selective licensing for landlords across England.

The Facts of the Matter

The controversy centers on four key points regarding Ms. Reeves’ compliance failure:

• The Admission: Ms. Reeves admitted to letting a Southwark property without the legally required selective licence, attributing the failure to an “honest mistake” and claiming ignorance of the rules. She applied immediately upon realizing the omission.
• The Hypocrisy Charge: This error occurred just days after she had publicly campaigned for a similar selective licensing scheme in her own constituency.
• The Evolving Excuse: Published emails suggested her letting agency had previously discussed the licence requirement with her or her husband, contradicting her initial apology.
• Legal Responsibility: While the letting agent was culpable (due to an employee’s abrupt departure), the Housing Act confirms the landlord (Reeves) remains ultimately legally responsible for compliance.

Legal Exposure vs. Political Forgiveness

The outcome highlights a double standard in housing law enforcement:

• Criminal Offence: Failure to license a property is a criminal offence under the Housing Act. Crucially, ignorance of the law is generally not a defence.
• Southwark Council’s Leniency: Southwark Council chose not to pursue enforcement action against Reeves. This surprising leniency prevents her tenants from claiming a potential 12 months’ rent repayment (around £38,000).
• A “Postcode Lottery”: This outcome highlights the severe inconsistent application of the law. Enforcement varies greatly between local authorities, suggesting a “postcode lottery.”

Three Harsh Lessons for Landlords

The Reeves debacle serves as a harsh lesson and a sharp critique of the current system. Landlords should take the following points as a stark warning:

1. Do Not Rely on Agents: The ultimate legal responsibility always lies with the landlord. You must conduct due diligence and obtain written confirmation/evidence that applications have been submitted.
2. Inconsistent Regulation is the Norm: Selective licensing is a “postcode lottery” with varying rules, fees, and enforcement across different boroughs. Assume strict rules, not lax ones.
3. Revenue vs. Standards: The leniency shown to Reeves (compared to the strict penalties faced by “amateur” landlords) fuels the argument that selective licensing is often viewed as a revenue-raising exercise.

The Takeaway

For small landlords, the message is clear: while a senior politician was “forgiven” by the local council, you should not expect such leniency. Meticulous compliance is essential to avoid significant penalties.