Rachel Reeves housing probe 'not needed,' insists Starmer after Chancellor unlawfully rented out family home

The Chancellor of the Exchequer failed to get a rental licence when she placed her family home in Dulwich, south London, on the market last year when she moved into Number 11 Downing Street.

She listed her four-bedroom home in the leafy neighbourhood for £3,200-a-month and has received rent for the property since September 2024.

Southwark Council say private landlords in the area where Reeves's house is situated must obtain a licence in order to rent their properties out.

It's led the Prime Minister to insist that a probe into the matter is not required, with Sir Keir adding that further investigation into the issue was "not necessary".

In a letter to Ms Reeves, the PM said that her apology was a "sufficient resolution".

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In a letter to the Prime Minister on Wednesday night, Reeves admitted she was unaware of the requirement and apologised.

She wrote: "This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence."

Reeves has now applied for a license, after speaking with the Independent Adviser on Ministerial Standards.

Starmer responded: "In light of your prompt action to rectify the position, including your apology- further investigation is not necessary.

"The Ministerial Code makes clear that in certain circumstances, an apology is a sufficient resolution. It is important that all Ministers are able to acknowledge where they consider themselves to have fallen below the standards expected of them.

"I am satisfied that this matter can be drawn to a close following your apology."

He concluded: "It is clear to me that you are treating this matter with the urgency and seriousness it deserves."

Despite Sir Keir determining no probe is needed, Tory leader Kemi Badenoch has called for a "full investigation" after the revelations.

Writing on social media, Tory leader Mrs Badenoch said: "The Prime Minister must launch a full investigation.

"He once said 'lawmakers can't be lawbreakers'.

"If, as it appears, the Chancellor has broken the law, then he will have to show he has the backbone to act."

Deputy Leader of the Liberal Democrats, Daisy Cooper, echoed the calls.

She said: "The Chancellor is meant to be delivering growth but the only thing she appears to be growing is the Government's list of scandals. This latest crisis needs investigating swiftly and thoroughly.

"Just weeks before the Budget, this risks seriously undermining confidence in this government and its ability to focus on the urgent tasks at hand."

The news Ms Reeves failed to obtain the licence comes after several high profile Government figures have had to step down as a result of scandals.

Among these were Angela Rayner, the former deputy prime minister and housing secretary, who resigned following a row about her tax affairs.

Lord Mandelson was also sacked as ambassador to Washington after details of his relationship with the dead paedophile financier Jeffrey Epstein came to light.