Revealed: The mansion From Edinburgh to No11: The Darling property portfolio

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Thursday, Apr 09 2009

Revealed: The mansion From Edinburgh to No11: The Darling property portfolio

By Colin Fernandez and Sam Greenhill
Last updated at 7:59 AM on 07th April 2009

The flat that was partly funded by the public and is now rented out by Alistair Darling is in a palatial mansion block in South London, it has emerged.

Although he pockets the rental income, the luxury apartment in Kennington has been partly paid for by the taxpayer.

Since 2005, the Chancellor has claimed £40,111 in expenses from the taxpayer towards the cost of a second home. It is likely much of this will have gone on furnishings and monthly mortgage payments for the property, which was designated as his second home three years ago.

Managing the money: Alistair Darling, with his wife Margaret

Now he lives in a grace-and-favour apartment and is able to let out the flat, which estate agents estimate is earning about £280 a week.

Last night it was unclear who the tenant is. But in the most recent register of interests, published in 2007, Mr Darling reveals: 'My wife and I own a small flat in London which is presently let.'

The Chancellor and his wife Margaret bought the apartment, close to the Oval cricket ground, for £226,000 in 2005. It is worth an estimated £300,000.

When he was made Chancellor in June 2007, they moved into rent-free accommodation at 11 Downing Street.

Despite this, Mr Darling still charged the taxpayer thousands for payments on his £1.2million family home in Edinburgh. He redesignated this property as his 'second home' to take advantage of the Commons' Additional Costs Allowance expenses.

Having moved out of the Imperial Court flat, Mr Darling put it up for rent. He has declared the rental income on the Register of Members' Interests. There is no suggestion he has broken Commons rules.

But critics may wonder how he can justify living rent-free while claiming expenses for his Edinburgh home and earning an estimated £14,000 a year letting out his South London flat.

Imperial Court is one of the most prominent buildings in the area. Built in 1836, it has gated private grounds, grand columns and views of Big Ben across the Thames. It was the headquarters of the Navy, Army and Air Forces Institute from 1921 to 1992.

Tenants can use the gym, spa, sauna, concierge service and underground parking. Westminster is just 20 minutes' walk away. The Darlings have a mortgage on the property with Northern Rock - the bank which the Chancellor bailed out with taxpayers' cash last year.

His financial arrangements came under scrutiny after he claimed £9,837 in secondhome allowances last year despite living in Downing Street. His aides said Mr Darling pays council tax at his Downing Street home and is taxed on it as a benefit in kind.