It was disclosed on Tuesday that the Prime Minister paid almost £140,000 for the land, which was owned by Lord Chadlington, the brother of John Gummer, the former Conservative cabinet minister who is now a peer.
Lord Chadlington has long-standing links to Mr Cameron and donated £10,000 to him personally to fund his 2005 run for the Conservative leadership. He has donated more than £60,000 to the party since then. His company has donated a further £30,000 in the past three years.
Downing Street officials said the land had been independently valued at the price paid by Mr Cameron and that there was no conflict of interest. The deal was cleared at the highest level by Whitehall officials, they said.
However, the disclosure of the land purchase is likely to raise questions over Mr Cameron’s links to Lord Chadlington, the chief executive of Huntsworth, a major public relations firm.
The peer is regarded as one of Mr Cameron’s oldest political allies and is the chairman of the Prime Minister’s local constituency association.
He lives in a manor house that neighbours Mr Cameron’s Oxfordshire home and agreed to sell a part of his land that adjoins the Prime Minister’s garden. The purchase, which was completed in July, was not publicly disclosed on either parliamentary or Whitehall registers, as Mr Cameron is not required to release details of private property, and came to light following inquiries from Channel Four News.
Last night, it was not clear why Mr Cameron decided to buy the land a year after becoming Prime Minister when his financial affairs were likely to be under intense scrutiny. The land he has bought appears to include part of the property’s driveway and contains a building believed to be a garage.
A Downing Street source stressed that the Prime Minister paid the “100 per cent market rate” and consulted both civil servants and an independent surveyor. “This was all checked by officials,” said the source. “Lord Chadlington and David Cameron are long-standing friends and there is no suggestion whatsoever of any conflict of interest or financial gain.”
The disclosure of the land purchase may prove embarrassing for the Prime Minister at a time when he is struggling to portray himself as in touch with normal people during the rocky economic times. He and his wife, Samantha, are recorded by the Land Registry as having paid £137,500 for the land. They are not recorded as having taken out a mortgage to cover the cost of the purchase.
Lord Chadlington was unavailable for comment last night but there is no suggestion either of the parties has done anything improper.
