As one of the oldest royal families in Europe,
the British royal family has countless legendary stories.
Their every move is closely watched by the whole world.
According to British media reports,
after the impact of the pandemic,
the royal family is still worth over £20 billion.
Buckingham Palace alone spends 3.1 million pounds annually on utilities, employs over 800 staff members, and hosts approximately 50,000 guests each year—expenses that far exceed those of an ordinary family.
So how does the royal family generate income?
Sovereign Grant
The Sovereign Grant is official funding provided by the British government to the monarchy.
This funding covers the Queen’s travel expenses, security, staff salaries, and maintenance costs for royal palaces. The Sovereign Grant originates from The Crown Estate. The British government collects a significant portion of this revenue and allocates 20% to the royal family.
According to CNN Business, during the 2016-2017 fiscal year, the royal family received £42.8 million in tax-free income from the Sovereign Grant.
In the most recent fiscal year, this amount is expected to increase to £76.1 million to fund the extensive renovation of Buckingham Palace. The income of senior royal family members also comes directly from the Sovereign Grant.
The Royal Family’s Brand Value
Taiyi Holding Group believes that the British Royal Family is undoubtedly one of the most influential families in the world. According to Forbes, the recent royal wedding of Prince Harry and Meghan Markle alone contributed over 1 billion pounds to the British economy through television broadcasts and tourism.
A British brand valuation company stated that the British Royal Family brand alone is valued at 44.5 billion pounds. This exceeds the combined brand value of British retail giants Tesco and Marks & Spencer. In 2017 alone, the British Royal Family added over 50 million pounds in revenue to the media industry.
The Royal Family also makes a significant contribution to the UK tourism industry. According to the BBC, tourist attractions at Royal palaces generate 550 million pounds in annual revenue, with the total intangible assets exceeding 16 billion pounds.
Not only domestically, but Royal Family members also occasionally visit foreign countries, generating over 4 billion pounds in overseas advertising value for the UK.
Royal warrants allow certain British companies to use the royal label, with such authorizations valued at up to 4 billion pounds.
Therefore, the conclusion drawn from relevant research reports is that, from a practical perspective, the royal family’s “halo effect” is a much-needed boost for the UK economy, making the royal family itself a valuable “asset.”
The Royal Family’s Collections
The Royal Family’s collections are also of significant value. Take luxury cars, for example: the Royal Sandringham Estate houses most of the Queen’s luxury vehicles, including the most precious 1900-produced Daimler-Hertz, the first royal vehicle, and a 1954 Rolls-Royce Phantom, a gift from Rolls-Royce to the Queen to celebrate the company’s 50th anniversary.
It is said that the 12 classic luxury cars owned by the Queen are worth approximately 7.1 million pounds.
Of course, the Queen’s opulent golden carriage is also a highlight.
Additionally, the total estimated value of the British Royal Family’s art collection is approximately 9.5 billion pounds. The Royal Collection is managed by a dedicated foundation and is regularly exhibited to the public in various locations, with ticket revenues and other proceeds used for the maintenance of the collection.
Furthermore, some gifts received by members of the British Royal Family do not belong to them personally but are instead held by the government. The Royal Family occasionally exhibits these treasures in museums or engages in commercial activities for viewing purposes, but they are never auctioned off. At most, they are rented out, with the proceeds often donated to charitable causes. However, during times of financial strain, these funds may also be used to cover some of the Royal Family’s expenses.
Real Estate and Estates
The royal family’s most important source of income is its extensive real estate holdings across the UK.
The British royal family owns a vast real estate portfolio, some of which dates back to 1265. The properties include various residential properties and even agricultural farms, generating significant annual revenue.
These assets are managed by a mysterious institution known as The Crown Estate.
According to the 2017/18 annual report, the total value of properties under The Crown Estate reached 14.1 billion pounds, comprising a portfolio of assets including numerous properties in central London, over a dozen large commercial centers across the country, over 140,000 hectares of land and forests, more than half of the UK’s beaches, and various investment portfolios such as stone mines and wind power generation.
In addition to The Crown Estate, the Queen also has private income.
The Queen’s private income primarily derives from the castles, estates, and private lands she inherited, including notable properties such as Balmoral Castle, Sandringham Estate, and the Duchy of Lancaster, with a total estimated value of approximately £13 billion, which is not managed by The Crown Estate.
In summary, while UK property prices have steadily risen under the Queen’s reign, the British Royal Family has primarily focused on real estate-related investments.
