King Charles thriving off increased rent in the Duchy of Lancaster

By Al Mayadeen English
Source: The New York Times
20 Jul 2023 00:27
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A report by the New York Times shows that the overall hikes in rent in the UK has provided King Charles III with lucrative income through the Duchy of Lancaster.

Prince Charles is seated next to the Queen's crown during the State Opening of Parliament, at the Palace of Westminster in London, Tuesday, May 10, 2022. (AP)

Rental prices in the United Kingdom are soaring at an unprecedented rate, leading to significant financial gains for King Charles III.

Charles recently received a staggering £26.2 million ($34.3 million) from his extensive property holdings known as the Duchy of Lancaster, which he inherited upon the death of his mother, Queen Elizabeth II.

Spanning an impressive 45,000 acres, roughly the size of Washington D.C, the Duchy generates substantial rental income each year without being subject to corporation taxes, unlike most businesses in Britain.

A report by The New York Times cites recent publication of the Duchy's financial records providing insight into how King Charles manages his financial empire, demonstrating his ability to overcome the nation's financial challenges while surpassing his mother's private income.

The Duchy of Lancaster, a real estate portfolio valued at $1 billion, is dedicated to generating revenue for the reigning monarch. The Duchy serves as a primary source of private income for the royal family, supporting them alongside the taxpayer-funded Sovereign Grant, which by itself overs most official royal expenses.

As the head of the Duchy of Lancaster, the UK monarch's financial strategy has proven successful. Charles's private income from the Duchy exceeds that of his mother, Queen Elizabeth II, by $2.5 million, as he has fewer family members to support.

The Duchy increasing rent

The report shows that the Duchy raised rents by three percent in the last fiscal year, which was attributed to purposes of "refurbishment and restoration,"

The Duchy's rent hikes added an extra $10.5 million in revenue for the royal family. Charles' lucrative earnings from the Duchy come at a time when many British residents struggle to afford basic living costs, as wages fail to keep up with rising housing and food expenses.

Following his mother's passing, Charles expressed a desire for a "slimmed-down monarchy" in response to the country's financial challenges. However, the latest financial records reveal no significant cost-cutting measures within Charles's private estate. Operating costs for the Duchy of Lancaster increased by 40 percent, attributed to an expanded workforce and a chief executive salary raise to £275,000. Charles's previous experience managing the Duchy of Cornwall demonstrates his business-focused strategy and preference for retaining control within a trusted group of insiders.

Finances of the Royal Family

The Duchies, including the Duchy of Lancaster, serve as important sources of private income for the royal family. However, they represent only a fraction of the family's estimated $28 billion fortune, which includes personal wealth, real estate assets under the Crown Estate, the government-funded Sovereign Grant, and properties like Buckingham and Kensington Palaces.

The royal family has traditionally maintained secrecy surrounding their wealth, leading historians to describe them as more secretive than intelligence services. The Duchy's financial operations have been kept confidential, with former employees signing nondisclosure agreements during the hiring process. Charles's utilization of his private income derived from the Duchies remains undisclosed, reminiscent of his childhood when he received funds for his "maintenance and education."