Watchdog Exposes Andrew’s Sub-letting of Royal Lodge Cottages

A recent report by the National Audit Office (NAO), the public spending watchdog, has disclosed that Andrew Mountbatten-Windsor generated undisclosed rental income by sub-letting three cottages on the Royal Lodge estate. The prince held a lease for these properties from the Crown Estate. This publication marks the first comprehensive review of royal residences in two decades.

The investigation highlights that King Charles III covers the rental costs for the London accommodations of his daughters, Princesses Eugenie and Beatrice, who are not employed as working royals. The NAO report details that the royal family, including staff, occupied a total of 12 properties held by either the Crown Estate or the Royal Household. A spokesperson for Buckingham Palace described the findings as consistent with the Royal Household’s pledge to maintain transparency.

According to the watchdog, Princess Eugenie resides at Kensington Palace and Princess Beatrice at St James's Palace. These central London properties are maintained through public funding via the Sovereign Grant. However, the princesses do not contribute to the rent; instead, the cost is settled by the "privy purse," which consists of the monarch’s personal funds, paid directly to the Royal Household. The specific rent amounts are not itemized in the report, but sources indicate they are set at 60% of the open market value.

Norman Baker, a former Home Office minister and vocal critic of royal finances, condemned the practice. He labeled the subsidization of luxury housing for non-working royals as "outrageous," arguing that the public is "being taken for a ride." Baker asserted that such financial arrangements are no longer tenable and noted that public deference regarding royal expenses is diminishing.

In response, a Palace source clarified that the rent contributions from non-working royals are intended to offset publicly funded expenditures, ensuring no additional burden is placed on the Sovereign Grant, which finances the monarchy’s official duties. The NAO’s scrutiny was largely triggered by the scandal involving Andrew Mountbatten-Windsor, and the findings will be examined further by MPs on the Public Accounts Committee.

Although Andrew moved from Royal Lodge to Sandringham in Norfolk earlier this year, his lease on the main estate remains valid until October 2026. The NAO report does not allege any misconduct on his part. Beyond the main building, the Royal Lodge complex includes eight other properties. Andrew’s lease permitted him to sub-let three of these cottages, a practice he continued until April 2026.

While the exact income Andrew received was not specified, Palace sources suggest he rented the units to current or former staff members, with the proceeds covering only operational costs. Regardless of the sum, the money went to Andrew personally rather than to the Crown Estate, which would typically remit profits to the Treasury.

When Andrew assumed the Royal Lodge lease, he invested £7.5 million in repairs, a contribution that exempted him from paying monthly rent. Additionally, he held a lease for East Lodge, a property the BBC previously reported would be returned to the Crown Estate. Beyond their royal accommodations, Andrew’s daughters maintain residences in the Cotswolds and Portugal.

The report also notes that the Crown Estate covered nearly £400,000 in repairs prior to the Prince and Princess of Wales moving into their Windsor residence, Forest Lodge. Princess Michael of Kent, another non-working royal, similarly benefits from a Kensington Palace property funded by the privy purse.

In contrast, eleven working royals occupy palace accommodations free of charge in return for their official duties. This group includes 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 also reside in an apartment at Kensington Palace, in addition to their Crown Estate property. The document identified 21 other royal post-holders, including

Source: BBC News Generated at: 2026-06-04 23:05:18 UTC