Princesses Beatrice and Eugenie, daughters of Prince Andrew, are living rent-free in royal palace apartments, with the King covering the costs from his private income, according to a new report by the National Audit Office (NAO).
The NAO investigation revealed that the non-working royals pay nothing for their accommodation, contrary to earlier assumptions that they paid market rent. Beatrice has an apartment in St James's Palace, while Eugenie occupies a cottage in Kensington Palace grounds.
The report found that rents for non-working royals are typically set at 60% of open market value due to security restrictions, but the sisters' rents were based on outdated valuations. Eugenie's rent for Ivy Cottage was based on a 2018 valuation until this year, and Beatrice's on a 2020 valuation.
The King's private income from the Duchy of Lancaster, known as the Privy Purse, covers the rent. The NAO did not disclose the amounts, citing privacy. The arrangement was reportedly put in place by the late Queen, with Eugenie paying for her own renovations.
Former Liberal Democrat minister Norman Baker criticised the arrangement, saying: 'There’s no way that non-working members of the royal family should be subsidised by the Duchy of Lancaster.' He added that less profit has been passed to the Treasury as a result.
Beatrice, 37, is vice president of strategic partnerships at Afiniti, and Eugenie, 36, is a director at Hauser and Wirth gallery. Both have faced scrutiny over their father's links to Jeffrey Epstein, with their names appearing in recent court files.
