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Reeves showed 'astonishing hypocrisy' in rental row and ethics chief must investigate, Badenoch says

Mrs Badenoch said an apology from her letting agents did not absolve the Chancellor

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By Chay Quinn

Rachel Reeves has showed 'astonishingly hypocrisy' in a row over her not securing a rental licence when letting out her family home, Tory leader Kemi Badenoch has told LBC.

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As part of LBC's Call Kemi phone-in, the Leader of the Opposition told Iain Dale that despite the letting agent apologising to Ms Reeves, she did not believe that the Chancellor was in the clear.

On Wednesday, Ms Reeves admitted breaking housing regulations by renting out her family home in Dulwich without a rental licence.

As 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.

Read More: Relief for Rachel Reeves over rental row as Downing Street publishes letters and estate agents apologise

Read More: Rachel Reeves: What is a selective property licence and who needs one?

Rachel Reeves
On Wednesday, Ms Reeves admitted breaking housing regulations by renting out her family home in Dulwich without a rental licence. Picture: Alamy

She said: "I don't know that she is in the clear and it's been fascinating watching Labour lurch from one place to another."

Mrs Badenoch accused Labour of being hypocritical after having been critical of the previous Tory government for lawbreaking.

The Tory leader told Iain: "Let's remember: Keir Starmer said lawmakers shouldn't be lawbreakers. And he was very happy to chase every fixed penalty notice (FPN) that occurred under the Conservatives.

"What Rachel Reeves looks like she has done is a criminal offence. It is the Housing Act that Labour brought in 2004 that says that under these regulations that if you have not followed the council guidelines, you are creating a criminal offence."

"I am only holding them to their standards. Because I don't go about pretending that I'm perfect. They spent five years pretending that they were the most perfect people. And now we've had resignation after scandal after resignation.

When Iain pushed back on Reeves's culpability, Mrs Badenoch added: "Let's wait and see. This is where an investigation is necessary.

"Let the ethics adviser investigate and if there's no problem then it's absolutely fine. But she is the Chancellor. This is an offence that she is supposed to have committed as Chancellor. A criminal offence."

Downing Street had sought to draw a line under the row surrounding the Chancellor’s breach of local housing rules, but the discovery of the messages has reignited scrutiny.

Southwark Council has suggested enforcement action is reserved for landlords who ignore warning letters about not having a licence or keep a property in an unsafe condition, indicating Rachel Reeves is unlikely to be fined.