The crown estate partially funds the monarchy

King Charles and the royal family are set to receive a major cash boost in 2026, it has been reported.

Thanks to a boom in the offshore wind sector, the monarch’s portfolio of land and properties has generated major profits.

The king is set to receive a cash boost (Credit: CoverImages.com)

King Charles’ properties make £1bn profit

2026 will reportedly see King Charles receive an annual income of £132 million!

As The Guardian reports, profits at the crown estate, which partially funds the monarchy, were flat at £1.1bn in its financial year to the end of March. However, this is more than double their level two years ago, which was £442.6 million.

As the legal owner of the seabed around England, Wales, and Northern Ireland, the crown estate is responsible for auctioning offshore wind rights.

The crown estate has benefited massively from the huge growth in the industry. It has demanded huge option fees from renewable energy developers to secure areas of the seabed to construct their wind farms.
The royal family’s grant has increased (Credit: CoverImages.com)

Crown estate benefits from offshore wind sector boom

The monarchy receives 12% of crown estate profits to fund its work, as well as the renovation of Buckingham Palace, which is reportedly costing £369 million.

This percentage fee was lowered from 25% back in 2023 to offset the rise in profits from offshore wind projects.

According to new calculations, thanks to the crown estate profits, the king is set to receive an official income of £132m, at the same level as last year.

The previous four years, the grant had remained flat at £86.3m.

Dan Labbad, the chief executive of the crown estate, said that the increase in profits is expected to be a “short-term” phenomenon.

“We expect this year to be the high point of these returns … before profits normalise,” he said.
Buckingham Palace is undergoing renovations (Credit: CoverImages.com)

Profits to be used on Buckingham Palace renovation

Last year, Michael Stevens, the king’s Keeper of the Privy Purse, said the expected significant increase in the sovereign grant would be used to fund the final stages of the renovation of Buckingham Palace.

Once this is finished, he said “a reduction in the absolute amount of the sovereign grant will be sought as part of the royal trustees review in 2026-27, through primary legislation”. This will ensure the royal family “continues to be funded at an appropriate level”.

Overall, the crown estate, which includes London properties and rural real estate, is worth £15bn. This is down slightly from last year’s valuation of £15.5bn.

The valuation of the marine part of the business decreased from £4.4bn to £3.4bn in the last year.

However, the property assets in London have seen an increase. They were £6.9bn last year and are now valued at £7.1bn.

The crown estate is also said to be redeveloping about 93,000 sq metres of commercial space in London. This is via a partnership with Westminster City Council to transform Regent Street, Haymarket, and Piccadilly Circus.