King Charles to remain at Clarence House as Buckingham Palace refurbishment ends
The monarch will continue to live at Clarence House after the £369 million renovation of Buckingham Palace is completed, while the palace will serve as the operational centre of the monarchy.
London – King Charles III will not move into Buckingham Palace once the decade-long refurbishment, funded by a £369 million public grant, is finished next year. The royal household confirmed that the King and Queen will stay at Clarence House, their current London residence, and will continue to use other royal homes in Scotland, Gloucestershire, Norfolk and Windsor Castle.
The palace will remain the administrative hub of the monarchy, hosting state visits, investitures and garden parties. A palace spokesperson said, "His Majesty retains huge affection for Buckingham Palace and a deep respect for its role in royal and public life. It will be a buzzing hive of royal activity in every other way."
The annual Sovereign Grant report showed the core funding for the royal household will rise to £99.9 million for 2027-28, up from £51.8 million in 2024-25. The increase is intended to cover a backlog of palace maintenance, cyber-security upgrades and the installation of energy-efficient heating systems, including £11 million earmarked for boiler replacements at Windsor Castle. Treasury officials emphasized that the grant is not a "blank cheque" and must meet value-for-money criteria.
Royal finance commentators noted the growing cost of the institution. Former Privy Council member Norman Baker said the monarchy should align its expenses with any plans for a smaller royal footprint.
The report also disclosed that King Charles has paid £12.9 million in tax for 2024-25 and £11.7 million for 2023-24, marking the first time a reigning monarch has publicly detailed private tax contributions. Prince William’s net worth from the Duchy of Lancaster was reported at £1.2 billion, exceeding the King’s estimated personal fortune of £640 million.
Travel expenses for the royal family exceeded £3 million in the year to March 2026, with the Prince of Wales incurring the highest individual cost for official trips. The household’s workforce now comprises 54 % women, narrowing the gender pay gap to 4.29 %, though the proportion of ethnic-minority staff fell slightly to 11.9 %.
The Sovereign Grant will continue at roughly £100 million annually for the next five years, after which it will be reviewed. The funding formula will shift from 12 % to 20.5 % of Crown Estate net profits starting in 2027-28.