Rachel Reeves' neighbour breaks silence on scandal with damning verdict

A neighbour of Rachel Reeves issued a damning 14-word verdict on the Chancellor's housing scandal this afternoonas Downing Street published fresh evidence. Speaking to journalists in south London today, the unnamed neighbour warned that Ms Reeves "should have done her research and known she had to licence the property."

The £3,200 a month family home near Dulwich is at the centre of a new sleaze row after it emerged last night that the Chancellor had been letting it out without the required licence. Ms Reeves has protested her innocence, but the Tories are demanding a full probe into the matter. While the neighbour of Ms Reeves said she was "sure it was a mistake", the Labour Party sent press officers down to the street to try and prevent journalists from making inquiries.

One party official was dispatched to "stop journalists from annoying the neighbours", telling the Daily Mail that all the neighbours were "friends with Rachel' so wouldn't want to say anything".

A Brazilian woman inside the four-bedroom detached home answered the door, but claimed she was staying there at the invitation of a 'friend'. This afternoon the letting agents involved in Ms Reeves' rental arrangements insisted hit had told her she needed a licence, despite the Chancellor claiming last night she had no clue.

Ms Reeves told Sir Keir Starmer that emails between her husband and their letting agency showed they had "agreed that the agency would apply for the licence on our behalf" and that they have "confirmed today they did not take the application forward".

The Chancellor said the letting agency she used to rent out her home had not taken forward a licence application "in part due to a member of staff leaving" but that she accepted "full responsibility" for the issue.

In a letter to the Prime Minister published on Thursday, the Chancellor wrote: "Today the letting agency and my husband have found correspondence confirming that on 17 July 2024 the letting agent said to my husband that a selective licence would be required and agreed that the agency would apply for the licence on our behalf.

"They have also confirmed today that they did not take that application forward, in part due to a member of staff leaving the organisation.

"Nevertheless, as I said yesterday, I accept it was our responsibility to secure the licence. I also take responsibility for not finding this information yesterday and bringing it to your attention. As I said to you today, I am sorry about this matter and accept full responsibility for it."

However the Tories said Keir Starmer needs to "grow a backbone" and properly investigate the matter.

A party source blasted: "Today, we find out that Reeves was alerted to the need for a licence in writing by the estate agents. Having been caught out, the Chancellor is now trying to make the estate agents take the blame, but Reeves never followed up with them to ensure that the licence had been applied for, or checked if the licence had been granted. Regardless, under the law, Reeves and her husband are responsible for ensuring the licence is granted.

"With more information coming to light every few hours, the Prime Minister needs to grow a backbone and start a proper investigation."