Housing Chief's Resignation Following Rental Licence Breach
Michael Situ has resigned from his position as Cabinet Member for Housing at Southwark Council after admitting he failed to obtain the necessary licences for two rental properties he owns in Peckham. This comes just months after Chancellor Rachel Reeves was found to have committed the same housing regulation breach in the same borough.
Parallel Cases: Situ and Reeves
The resignation creates an embarrassing situation for Southwark Council, as Mr Situ was responsible for overseeing housing policy in the very borough where Chancellor Rachel Reeves recently fell foul of identical regulations. Ms Reeves had rented out her Dulwich family home without obtaining the required 'selective' licence after moving to Downing Street.
In his resignation letter, Mr Situ attempted to shift blame to his letting agent while simultaneously accepting responsibility. He claimed the agent's accounts had fallen into council tax arrears and that despite contractual obligations for 'letting, licensing and maintaining' the properties, the appropriate licences had lapsed at various points.
'Whilst this is a failure on behalf of my letting agent, these are my properties, and I take full responsibility for allowing this situation to arise,' Mr Situ wrote. He added that he had voluntarily reviewed his rental arrangements following 'recent media scrutiny of Southwark's housing licensing scheme,' directly referencing the coverage of Rachel Reeves' case.
Consequences and Council Response
The offence of failing to obtain the correct rental licence carries potential fines of up to £30,000. Southwark Council requires private landlords in specific areas, including those where both properties are located, to obtain selective licences.
Council leader Sarah King accepted the resignation, praising Mr Situ for acting 'with great integrity' in taking responsibility, while acknowledging his departure would be 'an enormous loss' to her cabinet team. The matter has now been referred to the council's Monitoring Officer for further investigation.
This incident represents another setback for Southwark Council, which saw former leader Kieron Williams resign in June following a critical inspection by the housing regulator of the borough's homes. Mr Situ had held the top housing job for just three months before his resignation.
The parallel with Rachel Reeves' case is particularly striking. Last month, it was revealed the Chancellor had also failed to obtain a rental licence, though she claimed unawareness of the requirement and referred herself to Parliament's independent ethics advisor. Her estate agency, Harvey & Wheeler, subsequently issued a public apology, blaming the oversight on a staff member who moved jobs without completing the application.
