An estate agent who did not apply for a licence for Rachel Reeves to rent out her family home is not to blame for the mistake, his boss says.
The agent found himself under intense political crossfire after handling the Chancellor’s case, and has received criticism for leaving the company abruptly after failing to fulfill the agreement.
The property manager’s boss - Gareth Martin - has stepped into defend his former exployee and confirmed that he resigned after being offered a position elsewhere.
Mr Martin, who owns Harvey & Wheeler, says his firm took on the Chancellor’s case because she was “high-profile” and said it was “unfortunate” that his employee had moved on.
This comes as Ms Reeves faced further questioning as it emerged that she had been warned by a second estate agent that she would need documentation to rent her family home in Dulwich, south-east London.
Last week, it came to light that the Chancellor had broken housing law by renting the four-bedroom property at £3,200 a month without a rental licence after moving to Downing Street.
Landlords in Southwark are required to secure “selective” licenses, but local authorities have said they won’t fine her over the breach.
Ms Reeves initially claimed that she was unaware of the requirements, but later backpedaled and published emails proving that her agents, Harvey & Wheeler, had offered to secure the licence for her.
When it emerged that they failed to do so, they released a statement taking full ownership for the mistake.
However, failing to obtain a licence falls on the homeowner and can be a criminal offence which can be punished with a £30,000 penalty.
Ms Reeves’ tenants could require her to pay back a year’s rent, which would cost her £38,000.
Speaking on the record for the first time, yesterday Mr Martin said: “There is absolutely no criticism of any member of staff. The previous property manager was very good. I take full responsibility for the mistake. It was just unfortunate timing... an innocent mistake.
“We were trying to help. It is really unfortunate. When you get a high-profile client you want to help them.”
Ms Reeves faced further questioning on her claim that she was unaware of the need for a license, when it was revealed that she had approached a second agent for advice. This agent also warned her that she would need to apply for a licence.
According to a spokesperson for Knight Frank “it is standard procedure to notify all clients of their legal and regulatory obligations when letting a property.”
Since the error was made public, the Tories have called for a further investigation into whether Ms Reeves was, indeed, aware of the rules.
Conservative Treasury minister Gareth Davies said: “Each day brings fresh questions about Rachel Reeves' account. This latest revelation casts serious doubt on her claim not to have known about the need for a licence.
“Her story seems to shift with every explanation. The Prime Minister must now get to the bottom of this and order a full investigation without delay.”
Last week, Ms Reeves finally applied for the correct licence after an embarassing interaction with Keir Starmer in which she claimed she previously had no knowledge of the need for a licence.
Sir Keir responded by saying it would have been better for Ms Reeves to have trawled through the emails before contacting him, but ultimately concluded that she had acted in “good faith”.
Sir Laurie Magnus, the independent adviser on ministerial standards said Ms Reeves had committed an “inadvertent error.”
Thanks to this judgement, the Prime Minister avoided the embarassment of having to fire his Chancellor less than a month before she was set to deliver the Autumn Budget.
A spokesperson for Ms Reeves said: “You have the conclusion of Laurie Magnus, and the exchange of letters from October 30 where Rachel Reeves references correspondence from Harvey & Wheeler that says a selective licence would be required.”
