Why is King Charles not going to live at Buckingham Palace after its renovation?

Ever since Queen Victoria established it as the sovereign's principal residence in 1837, the Buckingham Palace has remained closely associated with the day-to-day life of Britain's reigning monarch.

That long-established tradition, however, is about to change.

Royal officials have confirmed that King Charles III and Queen Camilla will not make Buckingham Palace their permanent home after the completion of the building's decade-long restoration programme next year.

Instead, the couple will continue living at Clarence House, their long-time London residence situated only a short distance away along The Mall.

This means Charles will become the first British sovereign since Queen Victoria to deliberately choose another residence over Buckingham Palace as his principal London home.

Ending a tradition that began with Victoria

Constructed during the 1820s, the palace eventually became the official London residence of the sovereign after Queen Victoria ascended the throne in 1837.

More from Explainers

Starmer’s exit exposes Britain’s soul crisis: The return of the ‘sick man’ of Europe

The revolution is dead in Cuba; don’t make it a martyr

From that point onwards, every British monarch has made Buckingham Palace their principal residence in the capital, cementing its place as both a family home and the administrative heart of the monarchy.

Over the decades, the palace evolved into much more than a residence. It became one of the country's most recognisable landmarks and an international symbol of the British Crown.

Its famous balcony has witnessed countless historic moments. Crowds have assembled outside its gates to celebrate royal weddings, national victories and jubilees, while processions travelling along The Mall have transformed the palace into the centrepiece of Britain's ceremonial life.

Queen Elizabeth II's Platinum Jubilee celebrations, marking 70 years on the throne, were among the most recent examples of Buckingham Palace serving as the focal point for national celebrations.

Visiting presidents, monarchs and world leaders have also attended elaborate state banquets inside its historic State Rooms, while the sovereign regularly receives foreign dignitaries and conducts official audiences there.

Behind the scenes, Buckingham Palace also functions as the headquarters of the royal household. In addition to its ceremonial spaces, it houses offices for the royal bureaucracy responsible for supporting the monarch's constitutional, diplomatic and administrative responsibilities.

Why King Charles has chosen Clarence House instead

Rather than relocating into Buckingham Palace after the refurbishment concludes, King Charles and Queen Camilla will continue living at Clarence House, the London residence Charles has called home for more than two decades.

The King moved into Clarence House in 2003 while he was still Prince of Wales, and the property has remained his principal London residence ever since.

Standing only a short walk from Buckingham Palace, Clarence House offers a markedly different living environment.

Designed by celebrated architect John Nash and built between 1825 and 1827, the four-storey Regency-style residence is considerably smaller than Buckingham Palace. With only five bedrooms, it has long been regarded as a more intimate and manageable home compared with the vast scale of the palace.

King Charles III meets members of the India men's Test cricket teams during an audience in the gardens of Clarence House, London, UK, July 15, 2025. File Image/Pool via Reuters

Royal officials have indicated that practical considerations played a role in the decision. Buckingham Palace contains 775 rooms and functions as the administrative centre of the monarchy, accommodating not only ceremonial spaces but also extensive office facilities.

Living there would effectively place the King above a busy government-like workplace that experiences continuous administrative activity throughout the day.

Previous royal occupants had also acknowledged the practical drawbacks of living in such a large historic building. Queen Elizabeth II and Prince Philip had frequently observed that the palace could feel cold, draughty and institutional because of its enormous size and age.

Clarence House, by contrast, provides a more conventional residential setting while allowing the King to remain only minutes away from his official workplace.

The decision also means there will be little disruption to Charles' established routine. Even after Buckingham Palace's restoration is complete, Clarence House will continue serving as his primary London base.

Outside London, the King's wider pattern of residence is expected to remain unchanged.

He will continue spending time at several other royal properties throughout the year, including Windsor Castle, Sandringham House in Norfolk, where he traditionally spends part of the winter, and Birkhall, his private residence on the Balmoral estate in Scotland, which has long been regarded as one of his favourite homes.

Buckingham Palace will remain the monarchy's headquarters

Royal officials were keen to point that the decision should not be interpreted as a downgrading of the palace's constitutional importance.

James Chalmers, the senior royal official responsible for overseeing the King's financial affairs told reporters, "It is and will remain 'monarchy HQ', the crown jewel of our national buildings, with the sovereign’s standard flying proudly from the roof whenever His Majesty is in London."

Royal officials also stressed that Charles and Queen Camilla will continue working from Buckingham Palace throughout the remainder of his reign.

Official audiences, meetings with the British Prime Minister, diplomatic engagements, investitures and state banquets for visiting heads of state will all continue to take place within the palace's historic rooms.

Rather than functioning as a private family residence, Buckingham Palace will increasingly serve as the King's principal workplace.

Royal officials also confirmed that private accommodation inside the palace will not disappear altogether. A dedicated suite of rooms will remain available for the King, allowing him to rest between official engagements or stay overnight when circumstances require.

The Royal Standard will likewise continue to signal the monarch's presence at the palace. In accordance with long-standing protocol, the flag will fly whenever King Charles is inside carrying out official duties.

Another royal spokesperson sought to reassure observers that Buckingham Palace's symbolic position within Britain's constitutional system would remain intact despite the change in residential arrangements.

"The palace will continue in every traditional way to be the beating heart of the monarchy, just not its resting head."

A palace transformed by restoration — and a different future awaits

The King's decision comes as Buckingham Palace approaches the completion of one of the largest renovation projects in its modern history.

In 2017, the Royal Household launched a comprehensive refurbishment programme valued at approximately £369 million (around $487 million).

The work was designed to modernise critical infrastructure throughout the historic building, replacing ageing electrical wiring, obsolete plumbing and outdated heating systems that had served the palace for decades.

The extensive programme was intended not simply as cosmetic restoration but as essential maintenance to ensure the building could continue functioning for decades to come. Royal officials have said the improvements are expected to keep Buckingham Palace operational for at least another half-century.

Opening Buckingham Palace to more visitors

One of the most significant consequences of King Charles' decision will be the expanded public use of Buckingham Palace.

Royal officials have made it clear that retaining Clarence House as the King's principal residence will allow much greater access to one of Britain's most visited historic buildings.

The palace already attracts approximately 700,000 visitors every year, but officials expect its role as a cultural destination to grow once it is no longer required to function primarily as the monarch's private home.

According to Chalmers, the decision creates opportunities to host more events and increase the number of public tours, although officials have not yet announced precisely how visitor access will be expanded.

The timing is significant because the refurbishment has been financed through public funds. Since taxpayers have contributed towards the £369 million restoration programme, increasing public access is viewed as a way of ensuring that the building serves a broader national purpose once renovation work is complete.

Rather than limiting access because it remains an occupied royal residence, Buckingham Palace can increasingly be used to accommodate exhibitions, ceremonial occasions, educational programmes and additional guided tours while continuing to host official royal engagements.

A broader effort to modernise the British monarchy

Royal officials revealed the decision during a briefing on royal finances that also produced another historic first: King Charles became the first reigning British monarch to publicly disclose the amount of personal tax he paid.

Although Charles had voluntarily published details of his taxes while serving as Prince of Wales, this was the first occasion on which such figures had been released since he became King following Queen Elizabeth II's death in 2022.

For the 2024-25 financial year, Charles paid £12.9 million in income and capital gains tax, an increase from the £11.7 million he paid during the previous financial year.

Royal officials also disclosed that the UK King has paid more than £30 million in tax since ascending the throne.

The figures place Charles among Britain's highest taxpayers while offering the public an unprecedented glimpse into the monarch's personal finances. Unlike many of the castles, artworks, jewels and official residences associated with the Crown, the King's tax liability relates only to his private income.

Much of that income comes from the Duchy of Lancaster, the historic estate that has provided private income to every British monarch since 1399. Royal officials said the Duchy of Lancaster is expected to generate £25.2 million during the 2025-26 financial year.

The King's tax payments also include income derived from privately owned estates, including Balmoral in Scotland and Sandringham on England's east coast, together with capital gains tax arising from asset sales.

By law, Britain's monarch is not required to pay income tax, capital gains tax or inheritance tax. Nevertheless, successive monarchs have voluntarily chosen to do so.

Queen Elizabeth II adopted the practice after 1993, and King Charles has continued the arrangement while also deciding to reveal the amount publicly for the first time since becoming sovereign.

Royal officials emphasised that Charles was under no legal obligation to disclose these figures. His tax affairs, like those of any private citizen, remain confidential under British law.

Prince William's disclosures

King Charles was not the only senior royal to release financial information. Prince William, the current Prince of Wales, also disclosed that he paid £7.76 million in income and capital gains tax during the 2024-25 financial year, compared with £8.34 million the year before.

His office also announced that £1.5 million in rental income generated from a closed prison would be directed to the surrounding local community.

The disclosures came against the backdrop of continuing debate over how the monarchy is funded.

In addition to private income, the sovereign receives funding through the Sovereign Grant, which finances official royal duties including staffing, palace maintenance and travel.

The grant is calculated using a percentage of profits generated by the Crown Estate — a large property portfolio whose revenues are surrendered to the government in return for annual funding for the monarchy.

Officials said the Sovereign Grant rose from £86 million during 2024-25 to £132 million in the following financial year after strong revenues generated by offshore wind farm licences.

It is expected to increase again to £137.9 million during 2026-27. However, Chalmers announced that the grant would then be reduced to £100 million beginning in 2027-28.

He explained that the reduction would take place "in line with His Majesty's clear wishes," with funding remaining at that level until the 2031-32 financial year. Although the future grant will still exceed levels seen before the Buckingham Palace refurbishment began, officials argued that the funding arrangements include safeguards.

"This is not a blank cheque," Chalmers said, adding there were safeguards in place to ensure the amount was proportional.

Increased scrutiny of the monarchy

The financial disclosures also arrive during a period of heightened examination of Britain's royal finances. Media reports published during 2024 revealed that the Duchy of Lancaster and Prince William's Duchy of Cornwall had charged rent to organisations including Britain's National Health Service, the army and schools.

Although the latest disclosures provide more information than has previously been available, some critics continue to argue that the monarchy's finances remain insufficiently transparent.

The Royal Household's latest announcements therefore represent part of a broader effort to address those concerns. Officials also acknowledged that the monarchy has been attempting to move beyond months of difficult headlines surrounding Andrew Mountbatten-Windsor, formerly known as Prince Andrew.

Public attention on his links to convicted sex offender Jeffrey Epstein has overshadowed many of King Charles' efforts to reshape the monarchy since succeeding Queen Elizabeth II.

Against that backdrop, initiatives such as publishing tax payments, expanding public access to Buckingham Palace and redefining how royal residences are used have been presented as evidence that the institution is capable of adapting to changing public expectations.

With inputs from agencies