TENANTS of Rachel Reeves’ plush London pad could be entitled to a £41,000 payout after the Chancellor broke housing rules.
Ms Reeves could also face prosecution, fines and be added to a public shaming database for “rogue landlords”.
Last night the Chancellor admitted failing to obtain a licence to rent out her four-bed home in leafy latte-sipping Dulwich for £3,200 per month.
The local council requires a special licence to let out properties in the area.
Letting without the required paperwork is a criminal offence.
Rule-breaking landlords can be hit with a civil fine of up to £30,000, face an unlimited criminal penalty or be forced to pay back rent to tenants.
Today a spokesman for Sir Keir Starmer repeatedly refused to say whether Ms Reeves had broken the ministerial ethics code.
On Wednesday the Chancellor apologised for what she claimed to be an “error”.
Downing Street and Sir Keir’s ethics adviser insisted saying sorry was a “sufficient resolution” to any ethical worries.
But the PM’s spokesman repeatedly refused to say whether Sir Laurie Magnus had concluded the ministerial code was breached.
Pushed on whether Ms Reeves broke ethics rules, he said: “Regrettably she was not aware the licence was necessary and did not obtain the licence before renting the property out.
“She’s explained it was inadvertent mistake and as soon as it was brought to her attention, she took immediate action and applied for the licence.
“The Ministerial Code makes clear that in certain circumstances, in consultation with the independent adviser, an apology is a sufficient resolution.”
Tory leader Kemi Badenoch blasted Ms Reeves for failing to “be on top of her paperwork”.
The Chancellor, who is also MP for Leeds West and Pudsey, sparked ridicule after it emerged she had posted on Facebook earlier this month welcoming Leeds City Council’s move to expand its landlord licensing scheme.
Mrs Badenoch said: “The more I hear about the story, the more questions there are to answer.
“This is a 2004 statute that was brought in by Labour.
“She has tweeted about how it should be extended, and yet she wasn’t following it herself.”
The Tory leader added: “She is the Chancellor.
“She needs to be on top of her paperwork. She was aware of this legislation.
“I think there should be an investigation.”
