A public spending watchdog has revealed that Prince Andrew received undisclosed rental income from sub-letting three cottages on the Royal Lodge estate, which he leased from the Crown Estate. The National Audit Office (NAO) report, the first of its kind in 20 years, also disclosed that the King funds accommodation in royal palaces for Prince Andrew’s daughters, Princesses Eugenie and Beatrice, who are not working royals.
The report details a collection of 12 properties associated with Prince Andrew, his family, and staff, owned by either the Crown Estate or the Royal Household. While Prince Andrew has since moved from Royal Lodge to Sandringham, his lease on the property extends until October 2026. The NAO report explicitly states there is no suggestion of any wrongdoing by Prince Andrew in these arrangements.
Context of Royal Residences and Leases
The NAO’s review into royal residences was prompted by scrutiny surrounding Prince Andrew. It outlines the complex network of properties managed by the Crown Estate and the Royal Household. Prince Andrew’s lease on Royal Lodge involved a significant personal investment of £7.5 million for repairs, which exempted him from paying a monthly rent.
In addition to the main Royal Lodge building, the estate included eight other nearby properties. Prince Andrew’s lease permitted him to sub-let three of these cottages. He did so until April 2026, though the report does not specify the amount of rental income received. Palace sources suggest the income was intended to cover only running costs and was likely rented to staff or former staff.
Any profits from Crown Estate leases typically return to the Treasury. However, in this instance, the rental income from the sub-let cottages went directly to Prince Andrew, not the Crown Estate.
Accommodation for Non-Working Royals
A significant finding of the report is that King Charles III pays for the accommodation of Princess Eugenie and Princess Beatrice in central London palaces. Princess Eugenie resides in Kensington Palace, and Princess Beatrice has a property in St. James’s Palace. Neither princess pays rent for these residences; instead, the Royal Household covers these costs from the monarch’s personal funds, often referred to as the ‘privy purse’.
While these palaces are maintained with public funds via the Sovereign Grant, a Palace source indicated that the rent paid for these specific properties for non-working royals is intended to cover any publicly-funded expenditure, thus not adding an extra cost to the Sovereign Grant, which funds the monarchy’s official duties.
The report notes that the rent level for these properties is set at approximately 60% of the open-market rate. Princess Michael of Kent, also a non-working royal, has a property in Kensington Palace, with costs covered by the Privy Purse.
Broader Picture of Royal Property Holdings
The report highlights that a total of 12 properties are associated with Prince Andrew, his family, and staff. This includes Princess Eugenie’s property in Kensington Palace and Princess Beatrice’s in St. James’s Palace. Both princesses also reportedly maintain homes in the Cotswolds and Portugal.
Beyond Prince Andrew’s immediate family, the report details accommodation arrangements for other royals and post-holders. Eleven working royals are provided with accommodation in palaces free of charge in exchange for their official duties. These include the King and Queen, the Princess Royal, the Duke and Duchess of Edinburgh, the Duke and Duchess of Gloucester, the Duke of Kent, and Princess Alexandra.
The Prince and Princess of Wales occupy an apartment in Kensington Palace, in addition to a Crown Estate property. The report also identifies 21 other royal post-holders, including 17 military knights, who receive accommodation without charge within occupied palaces.
Official Reactions and Criticisms
A Buckingham Palace spokesperson stated that the report aligns with the Royal Household’s commitment to transparency and expressed hope that the findings would clarify points regarding royal properties. The spokesperson added that arrangements for properties managed by the Royal Household are varied and depend on factors like location, tenants, and purpose to ensure residences are appropriately occupied.
The Crown Estate welcomed the NAO’s review, confirming that leases with royal family members were agreed upon based on independent professional advice and open-market valuations. Lee Summerfield, NAO director, emphasized the report’s role in presenting facts about the processes and arrangements of the Crown Estate and the Royal Household.
However, critics have voiced concerns. Norman Baker, a former Home Office minister and critic of royal finances, described the subsidization of luxury accommodation for non-working royals as
Leave a Reply