A report by the National Audit Office (NAO) has revealed that Prince Andrew received private income from subletting three cottages on his Windsor Royal Lodge estate while paying a nominal “peppercorn rent” to the Crown Estate. The findings, published on Friday, are set to form the basis of a Commons public accounts committee inquiry into royal property arrangements following public outrage.
The NAO report also shows that King Charles pays an “adjusted” rent from his private Duchy of Lancaster income—below open market value—for his nieces, Princesses Beatrice and Eugenie, to live in royal palaces. Beatrice’s St James’s Palace apartment rent is set at 68% of market value, while Eugenie’s Kensington Palace cottage is at 64%. The King also covers rent for Prince and Princess Michael of Kent’s Kensington Palace apartment, though no valuation record exists before 2026.
The Prince and Princess of Wales’s Forest Lodge home in Windsor underwent £400,000 in repairs by the Crown Estate before they moved in last year. William and Catherine hold a 20-year lease on the Grade II-listed property, paying £307,200 rent annually, reviewed every five years, with no upfront premium. They are responsible for internal refurbishments.
Andrew, now evicted to Marsh Farm on the Sandringham Estate, had a lease permitting subletting, but the amount he received is unknown. He paid a £1m premium and £7.5m on refurbishment of Royal Lodge under a 75-year lease in 2003. The report notes he could be entitled to compensation of up to £488,342 for surrendering the lease early, though the Crown Estate has indicated dilapidations may offset any payment. Sources suggest subletting did not generate a profit, covering only maintenance and running costs, but no rental agreements or financial details have been made public.
Former Liberal Democrat minister Norman Baker criticised the arrangements, stating that Andrew “was able to have a peppercorn rent for a gigantic property, but then to make potentially millions on the side from subletting properties. The money should have gone to the Crown Estate, not into [his] pockets.” The Duke and Duchess of Edinburgh also generated income by renting out the stable block at Bagshot Park until 2020, the report added.
