Reform UK says that Nigel Farage purchased a £1.4m property using funds from his I’m A Celebrity… Get Me Out Of Here! appearance.
The acquisition was finalised in May 2024, just weeks before he stood as a candidate in the general election, the party said.
Mr Farage took part in the ITV reality series in November 2023.
Reports suggest he earned a fee of £1.5m for the show, where he finished third.
Sky News reported on Thursday that the Reform UK leader bought the house in 2024, shortly after receiving a £5m personal gift from billionaire donor Christopher Harborne.
Mr Farage has insisted that there is no connection between the gift from Mr Harborne, a Thailand-based crypto-investor and significant Reform UK donor, and the property purchase.
“The relevant chronology is straightforward. The offer and purchase process for the property commenced before the gift,” a Reform UK spokesperson said.
“Mr Farage had already passed proof of funds and the relevant checks before receiving the gift. The purchase was therefore already proceeding independently of it.”
Mr Farage wrote on Thursday on X: “This is fake news by the establishment media who will do anything to hurt Reform as we challenge their cosy consensus.
“I had passed proof-of-funds and the relevant checks before receiving the gift.
“Sky News did not publish that part of our statement despite knowing the truth.”
It is understood that Reform UK is considering legal options in response to the report.
Mr Farage is facing an investigation by the Commons sleaze watchdog over the undeclared £5m gift, over which he had previously said there is “no case to answer”.
The Reform UK leader has said that the gift was not connected to his political activity and was needed to pay for private security for the rest of his life.
It is understood that Mr Farage was referred to Parliamentary Commissioner for Standards Daniel Greenberg, and the watchdog has opened an investigation under rule five of the MPs’ code of conduct.
This rule specifies that new MPs should register relevant financial interests received in the 12 months before their election within one month of entering Parliament.
In an interview with The Sun newspaper, Mr Farage said the gift was given on a “completely unconditional basis”, adding: “Frankly, it was given as a reward for campaigning for Brexit for 27 years.”
When it was suggested the gift may have influenced his decision to return to public life, Mr Farage said: “I can’t be bought by anybody, not even Elon Musk.”
Reports had previously suggested a donation to Reform could be made through a branch of Mr Musk’s X company, though relations between Mr Farage and the tech billionaire have cooled since.
Mr Farage said in his interview: “He wanted to give us a load of money if I said certain things publicly and I refused.
“I didn’t do it so I made an enemy of Elon Musk, but that shows you I am my own man. I make my own mind up.”
In 2018, Mr Farage was reportedly docked £35,000 – half his monthly salary as a member of the European Parliament – following claims he misspent EU funds.
He was said to have been investigated over accusations that his office assistant had not been working on EU matters, the BBC said.