The National Audit Office (NAO) has published a report revealing that the Duke of York sublet three cottages on the Royal Lodge estate for over two decades while paying a nominal peppercorn rent. The investigation into royal residential property arrangements found that income from subletting was payable to Andrew Mountbatten-Windsor, with no details of earnings made public.
The report also disclosed that King Charles III funds the accommodation of Princesses Beatrice and Eugenie, both non-working royals, from his private Duchy of Lancaster income. Their adjusted rents were based on out-of-date valuations: Eugenie's Ivy Cottage in Kensington Palace was valued at 2018 rates until this year, and Beatrice's St James's Palace apartment at 2020 rates.
Former Liberal Democrat minister Norman Baker called the arrangements 'outrageous', stating: 'It shows an absolute total contempt for the taxpayer... The money should have gone to the Crown Estate, not into [Andrew's] pockets.' Sources suggested subletting did not generate profit, with rent covering only maintenance and running costs, but no figures or rental agreements have been released.
The NAO noted Andrew was entitled to sublet up to three properties under his lease terms. He vacated Royal Lodge earlier this year, moving to Sandringham, and his subletting ended in April 2026. The amount of any compensation for surrendering his lease, potentially between £301,967 and £488,342, remains unknown pending assessment of the property's condition.
