Andrew Mountbatten-Windsor earned more than £2,000 a month by subletting cottages on his Windsor estate, despite paying no rent on the property himself, a parliamentary report has revealed.
According to a report published on Thursday by the Public Accounts Committee, the former Prince was entitled to earn income from renting out three cottages in the grounds of his former home, Royal Lodge. This was permitted under a lease agreement with the Crown Estate.
MPs criticised the arrangement, noting it ran contrary to standard commercial practice, which would typically involve the landlord—the Crown Estate—sharing in any subletting profits.
Subletting details
The report detailed that one cottage was sublet to a member of staff at below market value for most of Andrew’s 23-year tenancy. The other two properties were sublet from late 2021 for a period of less than a year, generating an income of just over £2,000.
Last month, Andrew paid the Crown Estate £1.5 million to terminate his 75-year lease on the Georgian mansion early, reportedly using funds provided by King Charles, as per The Times. He had agreed to surrender the property last year after being stripped of his royal titles over his association with the convicted sex offender Jeffrey Epstein. He has consistently denied any wrongdoing.
Committee recommendations
The committee recommended that the Crown Estate adopt standard commercial practices for subletting in all future leases. The report advised: “There should be a standard provision in leases that prohibits subletting, unless the landlord’s prior permission is obtained.”
When asked whether any lessons had been learned from the arrangement, the Crown Estate told the committee it was "reluctant to discuss specifics" regarding future changes, stating that the Royal Lodge lease was a "product of its time."
Rising costs at the Crown Estate
The report also highlighted rising costs at the Crown Estate, an independent commercial real estate business managing the monarch's property portfolio. Its administration costs have more than doubled since 2020–21, rising from £38.5m to £88m. This includes a 106% salary increase for the chief executive. The committee questioned how these increased costs were delivering greater benefits amid wider public sector pressures to cut spending.
Additionally, MPs scrutinised the Royal Household, which manages royal palaces separately from the Crown Estate. The report noted that of the 255 residential properties managed by the Household, seven are occupied by working royals at no charge.
Three other properties are occupied by non-working members of the family—Princesses Eugenie and Beatrice, and Prince Michael of Kent. They pay a rental rate of 60% of the open market value, with the King covering the rent for all three properties.
The committee criticised the Royal Household for lacking up-to-date market valuations for these properties—noting one property had no valuation data at all—and urged the implementation of regular independent valuations to ensure value for public money.
