Chancellor Rachel Reeves publicly admitted that she had let out her property without obtaining the required selective licence. The letting agent she used acknowledged an oversight: they had offered to apply for the licence but the property manager responsible resigned just days before the tenancy began, and the application was never submitted.
While the high-profile nature of the case gives it special attention, the underlying issues are ones that every letting agent and landlord should recognise. If even a front-bench politician and their agency can overlook this risk, what chance for the hundreds of everyday rentals operating across London and the UK? As Kamma’s licensing solution demonstrates, the solution lies in process, automation and clear accountability.
The Core Failings
- Ambiguous responsibility – In the Reeves case, the agent had “offered” to apply for the licence but did not make it clear that this was a bound responsibility. Then staff turnover meant the task was simply dropped.
- Lack of active tracking – The application process was not actively tracked to completion. Nobody flagged that the original manager had resigned and no replacement acted.
- Reliance on manual or undocumented hand-overs – Without an automated workflow or hand-over protocol, the licence requirement vanished into the background.
- Insufficient evidence and audit trail – When questioned, the chain of events proved weak. Reeves believed the agent had applied; yet the staff turnover meant that it had slipped through the cracks.
- High risk of enforcement – Letting a property without the required licence is a criminal offence under the Housing Act 2004; consequences include large fines and rent-repayment orders
Why Letting Agents Can’t Afford to Be Reactionary
- A single un-licensed let in a designated area can expose both landlord and agent to reputational damage, enforcement risk, and loss of trust. Agents are liable for licensing as well as landlords and can be fined for up to £30,000 for an unlicensed property
- Licensing rules are increasingly complex and vary by local authority (for example selective, additional, HMO licences). There are over 120 active additional and selective schemes, each with their own rules and caveats
- Staff turnover, portfolio size, and manual processes make it easy for tasks to be dropped — the Reeves case is simply an extreme example.
How the Kamma Licensing Solution Prevents Licence Oversights
Here’s how Kamma’s platform transforms licensing from a “to-do” into a tracked, auditable process:
1. Automated licence-need detection
Each property is checked at onboarding: postcode, borough, current schemes. The system flags if a selective/additional/HMO licence may be required. That removes the “forgot we needed one” scenario.
2. Application-tracking workflow
Kamma allows you to track the licensing approval process from submission, to the licence being granted, and even upcoming renewals. This means if a property manager leaves or becomes too busy with other week, there’s a log of what still needs to be completed
3. Audit-trail and compliance documentation
Upload evidence of application, licence certificate, expiry date stored centrally. If there’s any regulatory enquiry, the record is solid. Agents can show: “Yes, we used Kamma, this property was flagged, this workflow was followed”.
4. Renewal alerts and expiry prevention
A licence is granted for a fixed term — renewal often overlooked. Our system pre-alerts at e.g., 90/60/30 days to expiry, locks re-marketing until confirmed renewed.
5. Live local-authority updates
Licence schemes change: new areas, new rules, new fees. Kamma keeps data up to date so you’re alerted if a property becomes subject to a new scheme.
6. Dashboard and KPI oversight
For letting-agents with large portfolios: view % of properties with current licences, pending, overdue. Senior management can spot risk pockets before they surface.
The Message to Letting Agents
- Don’t wait for the “someone will apply” moment. Turn the licence‐application into a tracked process.
- Show your clients (landlords) you’ve got this under control — it helps build trust and protects your brand.
- Use technology to lock in hand-over resilience, especially with staff changes or high volume portfolios.
- Don’t assume “alerted the client” is enough. Unless you can prove it was done, the risk still exists.
How Kamma Helps Letting Agents Turn Compliance into Service Differentiation
By offering a robust licensing-workflow tool you also sharpen your value proposition:
- Agents can guarantee all properties they manage are checks-compliant, not just marketed.
- This differentiates you in a crowded marketplace, showing landlords you offer real risk-mitigation, not just tenant-finding.
- Documentation from the system becomes a tangible benefit you can show landlords — “Here’s your licence-status report”.
Conclusion
The Reeves case may have grabbed headlines because of the politician involved. But for letting agents it is a vital cautionary tale: no matter how professional the firm, if internal responsibility is unclear and tracking is weak, a licence can quietly slip.
With Kamma, you shift licence-compliance from “hope we’ve done it” to “we’ve done it, we’re monitoring it, here’s the record”. That raises your service level, reduces risk and protects both landlord and agency.
