The public accounts committee has announced an inquiry into the Crown Estate's leasing arrangements with members of the royal family, following scrutiny over the lease of Royal Lodge to Prince Andrew. The committee chair, Geoffrey Clifton-Brown, stated that responses from the Crown Estate and Treasury provide sufficient basis for an investigation, which will begin in the new year.
The Crown Estate confirmed that Prince Andrew is unlikely to receive compensation for surrendering his 75-year lease on Royal Lodge early, due to required repairs. He paid a £1m premium and £7.5m upfront for refurbishment in 2003, with a peppercorn rent. The estate also revealed that the Prince and Princess of Wales hold a 20-year non-assignable lease on Forest Lodge, paying open market rent.
The inquiry will examine value for money to taxpayers, covering properties such as Bagshot Park and Thatched House Lodge. The committee may call witnesses, though no modern precedent exists for a royal family member giving evidence, and they cannot be compelled to attend.
The Crown Estate noted that Prince Andrew gave 12 months' notice to surrender the lease on 30 October. Without repairs, he would have been entitled to £488,342.21 for ending the tenancy in 2026. The lease terms were independently reviewed as fair and market-consistent. Prince Andrew will move to a private property on the King's Sandringham estate.
