In a stunning revelation that has embarrassed the new Chancellor, Rachel Reeves has been forced to refund nearly £38,000 to former tenants after failing to comply with basic housing regulations.
The Labour MP, who now holds one of the country's most powerful economic positions, only submitted crucial deposit protection paperwork years after the tenancy had ended - and only after being taken to court by her former tenants.
The Paperwork That Came Too Late
According to court documents seen by the Daily Mail, Ms Reeves failed to protect the deposits of tenants who rented her £500,000 London flat between 2018 and 2021. The legal requirement to place deposits in government-approved schemes is fundamental to tenant protection laws introduced in 2007.
The Chancellor's failure to comply meant she was legally obligated to repay the deposits plus compensation - totalling an eye-watering £37,961.50.
A Race Against Time
In what appears to be a desperate attempt to mitigate the situation, Ms Reeves finally registered the deposits with the Tenancy Deposit Scheme on July 5th - the very same day she was appointed Chancellor. However, this last-minute action came nearly three years after the tenancy had ended.
Property law experts confirm that such delayed compliance does not absolve landlords of their legal responsibilities or the resulting penalties.
Political Fallout for the New Chancellor
The timing couldn't be worse for Ms Reeves, who has positioned herself as a champion of fairness and regulation in the property market. The incident raises serious questions about:
- Her attention to detail in financial matters
- Her compliance with regulations she now oversees
- The consistency between her political rhetoric and personal actions
This case serves as a stark reminder that all landlords, regardless of position, must adhere to the same rules designed to protect tenants' rights and deposits.
