A major parliamentary inquiry has been launched into the financial arrangements for royal homes, triggered by public fury over the Duke of York's favourable rental deal. The cross-party Public Accounts Committee announced it will examine all properties owned by the Crown Estate and leased to senior royals, in a move described as 'the opening of Pandora's box'.
The Scandal That Sparked the Probe
The investigation was prompted by the revelation that Prince Andrew has lived virtually rent-free for two decades at the 30-room Royal Lodge in Windsor Great Park. His 75-year lease, signed in 2003, required a £1 million upfront payment and £7.5 million for refurbishments, after which he pays a nominal 'peppercorn' rent. This arrangement, alongside the serious allegations against him, caused considerable public concern about the use of publicly-owned assets.
Sir Geoffrey Clifton-Brown, chairman of the committee, stated there had been 'considerable and understandable public interest in the spending of public money' relating to Andrew. The Crown Estate, which manages £15 billion of property with profits going to the Treasury, compiled a report on royal homes which formed the basis for the inquiry.
Which Royal Homes Are Under Scrutiny?
The probe will extend far beyond Andrew's situation, examining deals for several other senior royals. Key properties under the microscope include:
- Forest Lodge, Windsor: The new Windsor home of the Prince and Princess of Wales. William and Kate hold a 20-year lease and are confirmed to pay an 'open market rent', assessed by top estate agents. Estimates suggest this could be between £32,000 and £100,000 per month for the eight-bedroom Grade II-listed property.
- Bagshot Park, Windsor: The 120-room mansion of the Duke and Duchess of Edinburgh. Edward and Sophie secured a 150-year lease in 2007 by paying £5 million upfront, after which they pay an undisclosed 'peppercorn' rent.
- Thatched House Lodge, Richmond Park: The home of the late Queen's cousin, Princess Alexandra, 88. Her complicated lease results in a current annual rent of around £2,700, or approximately £225 per month.
Privately owned residences like Highgrove and Gatcombe Park, along with grace-and-favour homes, are not included in the investigation.
Consequences and Potential Fallout
The inquiry has significant implications. The committee possesses the power to 'send for persons, papers and records', and while royals cannot be compelled, it is likely senior courtiers will be summoned to give evidence. A final report with recommendations to ministers is expected.
Royal biographer Ingrid Seward warned the inquiry could become far-reaching, stating: 'This is the opening of Pandora's box. Once those MPs have got their big noses in there, they are not going to let this go.' She added that William and Kate, despite their market-rate rent, would 'be blaming Andrew for this, and quite rightly so'.
The Crown Estate report also revealed that Royal Lodge is in such disrepair that Andrew could lose a £500,000 'compensation' payment he was due for leaving early. Although his legal right to stay runs until October 2025, he is expected to move to the King's Sandringham estate much sooner.
This parliamentary scrutiny places unprecedented focus on the financial dealings between the monarchy and the state, questioning whether taxpayer interests have been adequately protected in the management of the nation's royal property portfolio.
