Prince and Princess Michael of Kent have their Kensington Palace apartment rent paid by King Charles from the Privy Purse, according to a new National Audit Office (NAO) report. The couple, who are non-working royals, occupy one of three properties inside royal palaces rented to non-working family members.
The NAO report found that the Royal Household's policy of charging around 60% of open market value is not consistently applied. For the Kents' property, there was no record of a lease valuation prior to 2026. The rent increased by 34% between 2020 and 2026, now set at 63% of the 2026 open market value.
Previously dubbed the 'Rent-a-Kents', the couple sparked controversy in 2002 when it emerged they paid a peppercorn rent of £69 per week. Queen Elizabeth II later agreed to pay a commercial rate of £120,000 annually until 2009, after which the King continued the arrangement.
The report also revealed that the Duke and Duchess of Edinburgh pay a peppercorn rent for Bagshot Park after a £5 million premium for a 150-year lease in 2007. They generated private income by subletting the stable complex until 2020, reportedly earning up to £130,000 per year.
Princess Alexandra lives in Thatched House Lodge in Richmond Park, paying an annual ground rent of £1,500 after a £670,000 premium in 1995. Her daughter Marina Ogilvy pays £17,436 annually for a cottage on the Windsor Estate.
The NAO report was commissioned following a Public Accounts Committee inquiry into Crown Estate property arrangements, after it emerged Prince Andrew paid a peppercorn rent for Royal Lodge while subletting three cottages on the estate.
