A newly released government watchdog report has revealed that Andrew Mountbatten-Windsor received rental income by subletting cottages located on the Royal Lodge estate.
The report, published by the National Audit Office (NAO), examined royal residences for the first time in two decades. It provides new details about how several royal properties are managed and funded.
Andrew Received Income From Estate Cottages
According to the report, Andrew leased Royal Lodge from the Crown Estate and later sublet three cottages on the estate. The income generated from those rentals has not been publicly disclosed.
The report found no evidence of unlawful activity. However, the arrangement is likely to attract public attention because of ongoing concerns about royal finances and property benefits.
Andrew took responsibility for major repairs when he signed the lease for Royal Lodge. He reportedly spent around £7.5 million on renovation work. As part of the agreement, he was not required to pay monthly rent for the property.
Accommodation for Princess Eugenie and Princess Beatrice
The report also revealed that Princess Eugenie and Princess Beatrice live in properties located within Kensington Palace and St James’s Palace.
Neither princess pays rent directly for these residences. Instead, the rent is covered through the Privy Purse, which consists of the monarch’s private funds.
Both palace complexes receive maintenance support through the Sovereign Grant, a funding system supported by public money.
A palace source stated that the rent paid for the princesses’ accommodation is intended to cover any publicly funded costs associated with the properties. The source added that taxpayers should not face additional expenses because of these arrangements.
Public Scrutiny Over Royal Housing Benefits
The report has sparked debate about housing benefits available to non-working members of the Royal Family.
Former Home Office minister Norman Baker criticized the arrangements. He argued that providing subsidized accommodation to non-working royals is difficult to justify, especially during a period when many people struggle with rising housing costs and affordability challenges.
The report does not disclose the exact amount of rent paid for the princesses’ residences. However, it states that the rate is intended to be around 60% of the open market value.
While the arrangements remain legal, critics believe they may raise questions about fairness and transparency.
Palace Highlights Commitment to Transparency
A Buckingham Palace spokesperson welcomed the publication of the report and said it reflects the Royal Household’s commitment to transparency.
The findings offer a rare look into royal property arrangements and funding structures. As public interest in royal finances continues to grow, discussions about housing benefits and property privileges are expected to continue.
The report serves as one of the most detailed reviews of royal residences in recent years and provides fresh insight into how these historic properties are managed.
