Tenant rights organisations have reported a sharp rise in renters seeking to reclaim money from landlords following the Rachel Reeves “illegal letting” scandal, which has thrust licensing laws and landlord responsibilities into the national spotlight.
Justice for Tenants (JfT), a charity recommended by Southwark Council for tenants seeking redress, said calls to its helpline about rent repayment orders (RROs) surged by 26 per cent in the days after revelations that the Chancellor failed to obtain a licence for her rented property in Dulwich, south London.
The case has highlighted widespread confusion among landlords and tenants alike about property licensing rules, which vary between local authorities but can expose landlords to severe penalties — including orders to repay up to 12 months of rent if they are found to be operating without a valid licence.
Ms Reeves, who moved into Downing Street earlier this year, had rented out her four-bedroom detached home in Dulwich for £3,200 per month since September 2024. Her register of interests confirms she has received rental income since that date.
However, the property was not covered by the necessary £900 selective licence required by Southwark Council. Two estate agents are understood to have informed her husband that a licence was needed, but it appears the application was never completed.
The Chancellor has apologised for the oversight, saying her family believed the letting agent had arranged the paperwork. Southwark Council has indicated it will not pursue enforcement action, as such measures are generally reserved for landlords who fail to act after being formally warned.
Even so, the council’s guidance notes that tenants may independently apply to a Tribunal for a rent repayment order. In theory, this could allow Reeves’s tenants to seek up to £38,000 in refunded rent — though there is no suggestion they intend to do so.
Justice for Tenants said the media coverage had “raised awareness dramatically” of tenant rights and potential claims.
Al McClenahan, JfT’s outreach lead, told The Telegraph: “Our helpline services have seen a significant increase in enquiries from tenants who discovered their landlord is unlicensed following Wednesday’s news about the Chancellor’s own failure to license her property.”
He added that while some callers were mistaken about whether their properties fell under licensing schemes, many others did qualify, especially in areas covered by Selective Licensing or House in Multiple Occupation (HMO) regulations.
Justice for Tenants claims a 98 per cent success rate in helping tenants secure refunds through RROs, which can be enforced as county court debts if a Tribunal rules in their favour.
The incident has reignited debate over the complexity of England’s patchwork of property licensing schemes, which campaigners say too often leave both landlords and tenants in the dark.
Property lawyers note that thousands of landlords may be inadvertently breaching local regulations, exposing themselves to repayment claims, fines and potential bans.
For tenants, the Reeves case has drawn attention to a little-known legal route to reclaim rent — one that could now see a growing wave of claims across local councils.
As McClenahan noted, “This has opened people’s eyes to just how widespread unlicensed letting really is — and how tenants can act to hold landlords accountable.”
