King Charles is expected to receive an official annual income of £132 million next year, following a record-breaking year for the Crown Estate, which saw profits exceed £1 billion—largely driven by booming offshore wind developments.
Despite profits remaining flat at £1.1 billion for the financial year ending in March, they have more than doubled from £442.6 million two years ago. The significant surge is attributed to the estate’s role in managing the seabed around England, Wales, and Northern Ireland, where it auctions offshore wind rights. Developers pay substantial option fees to secure these areas for windfarm construction, fueling the estate’s windfall.
The monarchy receives a portion of the Crown Estate’s profits through the Sovereign Grant, which supports royal duties and major projects like the ongoing £369 million renovation of Buckingham Palace. Although the grant was previously set at 25% of profits, it was reduced to 12% in 2023 to temper the impact of rising income from offshore wind.
Under the current arrangement, King Charles is poised to receive the same £132 million as last year. For four years prior, the grant had remained unchanged at £86.3 million.
Dan Labbad, chief executive of the Crown Estate, described the recent profit spike as temporary. “We expect this year to be the high point of these returns … before profits normalise,” he said.
Michael Stevens, Keeper of the Privy Purse, noted that the increase in royal funding would primarily cover the final stages of the Buckingham Palace renovation. He added that once this is completed, a reduction in the sovereign grant’s absolute value will be proposed during the 2026–27 royal trustees review through primary legislation, ensuring royal funding remains proportionate and transparent.
The overall value of the Crown Estate now stands at £15 billion, slightly down from £15.5 billion last year. The marine division’s valuation dropped by £1 billion to £3.4 billion, while the London property portfolio increased in value to £7.1 billion from £6.9 billion. The estate’s London holdings include prime real estate around Regent Street and St James’s, such as Victory House, home to the historic Veeraswamy restaurant.
The Crown Estate is also advancing a £490 million redevelopment project, which includes approximately 93,000 square metres (1 million square feet) of commercial space in partnership with Westminster City Council. The transformation targets key areas like Regent Street, Haymarket, and Piccadilly Circus.
In May, the estate entered a 50/50 conditional joint venture with construction giant Lendlease to develop up to 26,000 new homes and create 100,000 jobs. In total, the estate envisions building up to 56,000 homes, with planning already underway for more than 5,000 units.
A National Audit Office report last year found that while the Buckingham Palace renovation was being effectively managed, some cost escalations—stemming from structural issues and asbestos—were foreseeable and might have been anticipated.
