Michael Situ, Southwark’s Labour housing chief, resigned after failing to obtain rental licences for his properties, paralleling Chancellor Rachel Reeves’s similar oversight, sparking scrutiny of enforcement and political integrity in housing responsibilities.
Michael Situ, the Labour housing chief for Southwark Council, resigned from his role after admitting he had failed to obtain the necessary licences to rent out two properties he owns in Peckham. Situ held the position of Cabinet Member for Housing, overseeing council homes in the borough, and his resignation comes amid heightened scrutiny following a similar licensing breach by Chancellor Rachel Reeves, who had also rented out her family home without securing the required licence.
In a resignation letter, Situ sought to attribute the failure to a letting agent’s oversight, explaining that his agent was responsible for letting, licensing, and maintaining the properties but had allowed them to be without the necessary licences at various points. He also disclosed that the agent’s accounts had fallen into council tax arrears. Nonetheless, Situ took full responsibility for the situation, emphasising the importance of maintaining trust with residents and leading with integrity on housing issues in the borough. He confirmed that he had since ensured all necessary licences were being sought and all obligations met. Southwark Council’s leader, Sarah King, accepted the resignation, describing Situ’s decision to take responsibility as an act of great integrity, though noting his departure would be a significant loss to the cabinet team. The council has now referred the matter to its Monitoring Officer.
Situ’s case closely parallels that of Rachel Reeves. The Chancellor, who moved into Downing Street with her family following Labour’s 2024 election victory, rented out her main home in Dulwich without acquiring the mandatory selective rental licence, which in Southwark costs £945. The oversight emerged last month and was revealed by the Daily Mail. Reeves reported herself to Parliament’s independent ethics adviser upon realising the error and informed Prime Minister Keir Starmer. The estate agency managing her property, Harvey & Wheeler, admitted that a staff member abruptly leaving the company led to the failure to apply for the licence as promised. The agency has publicly apologised for the error. Despite this, Reeves accepted full responsibility for the mistake and took immediate steps to apply for the appropriate licence once the issue was flagged.
Prime Minister Starmer reviewed the matter with government ethics advisers and decided not to pursue disciplinary action, expressing continued confidence in Reeves. He has been clear that the incident, while serious, was not intentional. The oversight in obtaining rental licences is a notable breach of Southwark Council’s regulations, which require private landlords in certain areas to hold these licences, with failure to comply punishable by fines of up to £30,000.
The dual resignations and admissions of these prominent figures highlight ongoing challenges within Southwark concerning housing regulation enforcement. The council has faced additional pressures following the resignation of its former leader Kieron Williams in June, after a critical inspection by the housing regulator exposed deficiencies in the borough’s housing management. Michael Situ’s brief tenure of about three months before his resignation underscores the sensitivity and importance of adhering to housing laws, especially for those in public roles tasked with addressing the housing crisis.
The situation casts a spotlight on the administration and oversight responsibilities of landlords, particularly elected officials, in areas with stringent rental licensing requirements. It also raises questions about the reliability of letting agents entrusted with compliance duties. Both Situ and Reeves’s cases demonstrate how delegated responsibilities can lead to compliance failures if not closely overseen, resulting in reputational damage and political fallout.
In sum, the resignations and licence lapses serve as a stark reminder of the complexities and legal responsibilities entwined with property rental in regulated areas. They underscore the necessity for vigilance and rigorous management to ensure all licensing obligations are met to maintain public trust and uphold housing standards.
📌 Reference Map:
- [1] Daily Mail – Paragraphs 1, 2, 3, 5, 6, 7
- [2] The Guardian – Paragraphs 4, 5
- [3] The Guardian – Paragraph 5
- [4] Evening Standard – Paragraph 5
- [5] AP News – Paragraph 5
- [6] Evening Standard – Paragraphs 1, 2, 3
- [7] Sky News – Paragraph 5
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative is current, with the earliest known publication date being 16 November 2025. The report is based on a press release from Southwark Council, which typically warrants a high freshness score. However, similar incidents involving Rachel Reeves were reported in late October 2025, indicating that the issue has been ongoing for several weeks. ([standard.co.uk](https://www.standard.co.uk/news/politics/southwark-rents-michael-situ-resigns-landlord-licence-rachel-reeves-b1258117.html?utm_source=openai))
Quotes check
Score:
7
Notes:
Direct quotes from Michael Situ and Sarah King are present. The earliest known usage of these quotes is from the press release dated 16 November 2025. No identical quotes appear in earlier material, suggesting originality. However, the phrasing of some quotes varies slightly from previous reports, indicating potential paraphrasing.
Source reliability
Score:
9
Notes:
The narrative originates from a press release issued by Southwark Council, a reputable local government authority. The press release is corroborated by coverage from established media outlets such as The Standard. ([standard.co.uk](https://www.standard.co.uk/news/politics/southwark-rents-michael-situ-resigns-landlord-licence-rachel-reeves-b1258117.html?utm_source=openai))
Plausability check
Score:
8
Notes:
The report details Michael Situ’s resignation over failing to obtain the necessary landlord licences for his properties in Peckham, aligning with previous reports of similar breaches by other officials. The narrative includes specific details such as the properties’ location and the council’s response, which are consistent with known facts. The tone and language are appropriate for a formal press release.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is current and based on a press release from a reputable source, with corroboration from established media outlets. The quotes appear original, and the details are consistent with known facts. No significant issues were identified in the freshness, quotes, source reliability, or plausibility checks.
