A recent report by the National Audit Office (NAO) has uncovered that Princesses Beatrice and Eugenie have never personally paid any rent for their exclusive palace residences, despite living in them for nearly two decades. The findings have sparked questions about the financial arrangements benefiting both working and non-working royals.
Details of the Report
The NAO report highlights that the daughters of Prince Andrew, who perform no official royal duties, have been secretly subsidised for years, first by their grandmother Queen Elizabeth II and subsequently by their uncle King Charles III. Both princesses have their own careers, high-flying husbands, and multi-million-pound homes elsewhere, raising concerns about why they could not cover their own housing costs.
Prince Andrew's Arrangements
The report also discloses that Prince Andrew was permitted to let three properties on his leased Windsor estate, Royal Lodge, to staff and potentially retain the profits. Additionally, he could be entitled to more than £300,000 in 'compensation' from the Crown Estate after being forced to leave the Grade II-listed mansion due to his association with Jeffrey Epstein, several years before the end of his 75-year lease.
Other Royal Beneficiaries
Questions are also being raised about the late Queen's cousins, Prince and Princess Michael of Kent, who have enjoyed a long-term, sovereign-subsidised arrangement for their Kensington Palace apartment. Princess Alexandra, aged 89, rents a mansion in Richmond Park under a lease negotiated by a trust with the Crown Estate until 2144.
Reactions and Criticisms
Former Liberal Democrat minister Norman Baker described the revelations as 'outrageous', stating that the arrangements show 'absolute total contempt for the taxpayer'. He argued that non-working members of the Royal Family should not be subsidised by the Duchy of Lancaster.
Beatrice and Eugenie lived at St James's Palace from 2008. Eugenie moved to Ivy Cottage in Kensington Palace grounds in 2018, now splitting her time between London and a £3.6 million home in Portugal. Beatrice remains in her apartment, shared with her husband and family, while also owning a multi-million-pound Cotswolds property. Both rents are paid by King Charles from the Privy Purse, funded by his Duchy of Lancaster income and private funds, with no taxpayer money directly involved. However, the homes are in occupied royal palaces maintained by public funding through the Sovereign Grant, which the monarch reimbursed.
Market Value and Adjustments
The report found that adjusted rents, reduced because properties require tenants with security clearance, were based on outdated open market valuations. Some properties were dramatically undervalued, with the self-imposed 60% rule not always followed. Sources said the arrangement for Beatrice and Eugenie was established under Queen Elizabeth and honoured by King Charles, though all financial matters are under regular review.
Regarding Prince Andrew, sources insist he is unlikely to receive compensation, as repair costs for Royal Lodge would offset any amount owed. Rental income from subletting cottages was meant for maintenance, not profit, but the NAO noted these figures were not disclosed for independent verification.
Historical Context
Prince and Princess Michael of Kent, known as the 'Rent-a-Kents', originally paid a nominal £69 per week for their apartment. After public outcry, they began paying £120,000 per year market value, covered by Queen Elizabeth until 2010. The King has continued this private arrangement. Princess Alexandra's trust paid £670,000 for a second lease on Thatched House Lodge until 2144, with an annual ground rent of £1,500. Her daughter, Marina Ogilvy, pays £17,436 per year for a cottage on the Windsor Estate.
A Buckingham Palace spokesman expressed gratitude for the NAO report, emphasising transparency. A Crown Estate spokesman confirmed that leases with royal family members were agreed based on independent professional advice and open market valuations.
