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National Audit Office Reveals Andrew's Subletting Income at Royal Lodge

The investigation also found King Charles funds palace accommodation for Andrew's non-working royal daughters.

Asude Karataş • 5 Haziran 2026 08:01 • 3 dk okuma • 25 görüntülenme

A public spending watchdog has revealed that Prince Andrew generated undisclosed rental income by subletting three cottages on the Royal Lodge estate while paying significantly below-market rent to the Crown Estate. The National Audit Office report, the first comprehensive examination of royal residences in two decades, also found that King Charles funds accommodation for Andrew's daughters, non-working royals Princesses Eugenie and Beatrice, through the monarch's personal finances.

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The Subletting Arrangement
Palace Accommodation for Non-Working Royals
Broader Context and Public Response

The Subletting Arrangement

The National Audit Office discovered that Andrew Mountbatten-Windsor sublet three cottages on his leased Royal Lodge property, generating private income that had not been publicly disclosed. He maintained this arrangement while paying what critics describe as "peppercorn rent" to the Crown Estate for the main lease itself. The watchdog report does not specify the exact financial terms of these subletting agreements, but the arrangement highlights a discrepancy in how royal property arrangements are structured and managed.

Palace Accommodation for Non-Working Royals

The investigation revealed that Princess Eugenie occupies a cottage at Kensington Palace while Princess Beatrice resides in an apartment at St James's Palace. Neither princess pays rent directly; instead, accommodation costs are covered through the "privy purse," which represents King Charles's personal income from the Duchy of Lancaster. The rent levels are calculated as a reduced percentage of open market value, ranging from 60 to 68 percent. Kensington Palace and St James's Palace are maintained using public funds through the Sovereign Grant, which finances the monarchy's official operations.

Broader Context and Public Response

The report examined 12 properties used by Andrew and his family across royal estates. Although Andrew relocated to Sandringham in Norfolk earlier this year, he retains the lease on Royal Lodge until October 2026. Norman Baker, a former Home Office minister and royal finances critic, characterized the arrangements as "outrageous" and stated that the public was "being taken for a ride." A Buckingham Palace spokesman responded that the report reflects the Royal Household's commitment to transparency, while a Palace source argued that rent payments adequately cover any publicly-funded expenditure without creating additional burden on the Sovereign Grant.

What exactly did the National Audit Office report reveal about Andrew's rental arrangements?+

The watchdog found that Prince Andrew generated undisclosed private income by subletting three cottages on the Royal Lodge estate. He achieved this while paying significantly reduced rent to the Crown Estate for the property itself, an arrangement critics described as "peppercorn rent."

Who pays for Princesses Eugenie and Beatrice's palace accommodation?+

King Charles pays rent for both princesses' palace residences through his personal income, known as the privy purse derived from the Duchy of Lancaster. The rent is calculated at 60 to 68 percent of open market value. Although the palaces are maintained by public funds through the Sovereign Grant, the Palace argues that rent payments cover any publicly-funded expenditure.

How does this report connect to Andrew's earlier removal from Royal Lodge?+

The National Audit Office investigation was prompted by the public scandal surrounding Andrew's arrangement at Royal Lodge, which led to his eventual eviction by King Charles. Although Andrew has moved to Sandringham, he retains his lease on Royal Lodge until October 2026. The findings will form the basis of a forthcoming inquiry by the Commons Public Accounts Committee.

What properties does the report cover, and how many residences were examined?+

The National Audit Office examined 12 royal properties used by Andrew and his family. These include residences on Crown Estate-managed land and Royal Household-managed properties. The report also reviewed arrangements for other members of the royal family, including the Prince and Princess of Wales's Forest Lodge home in Windsor, which underwent 400,000 pounds in repairs before the couple's move.

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