The Crown Estate has written off more than 1 billion pounds from the value of its property portfolio. The independent company controls the sovereign’s hereditary estate, which comprises of large amounts of land around the UK.
This portfolio has suffered a fall in value of around 18 per cent to approximately £6 billion. In line with the wider economy, its worst-hit sector is office space and retail property in London.
The estate originates in the Norman Conquest of 1066, but although the property belongs to the Crown, its revenues have been returned to Parliament since the time of George III. Despite the drop in property values, this income totalled over £225 million last year, an increase of 6 percent on the previous.
The tremendously diverse portfolio includes commercial property in the capital, as well as agricultural land and more than half of the country’s coastline. This diversity has helped to limit losses.