A new report from the National Audit Office (NAO) has disclosed that King Charles is now covering the rent for the Kensington Palace apartment of Prince and Princess Michael of Kent. The non-working royals, who are cousins of the late Queen Elizabeth II, previously had their rent paid by the monarch.
Details of the NAO Report
The NAO report reveals that Prince Michael of Kent and his wife occupy one of three properties inside royal palaces that are rented to non-working royals. The Royal Household, which manages these leases, typically charges an adjusted rate of around 60% of the open market value. However, the NAO found that this rate is not consistently applied. For the Kents' property, there was no record of a lease valuation prior to 2026.
Historical Context
In 2002, the couple faced scandal when it emerged they paid a peppercorn rent of just £69 per week for Apartment 10, despite not being working royals. MPs demanded they pay full rent, but the couple argued that Queen Elizabeth II had granted them the use of the palace as a wedding present. The late Queen then agreed to pay a commercial rate of £120,000 per year on their behalf until 2009, when the couple were expected to cover the cost themselves.
Current Arrangement
The NAO report now shows that the King is paying the rent from the Privy Purse. It is understood that the late Queen continued to pay after 2009, and King Charles has maintained that commitment. The exact amount of current rent is not disclosed, but the NAO notes it has increased by 34% between 2020 and 2026, now standing at 63% of the 2026 open market valuation.
Other Royal Housing Arrangements
The report also highlights other royal property deals. The Duke and Duchess of Edinburgh pay a peppercorn rent for Bagshot Park after signing a 150-year lease in 2007 for £5 million. They have also sublet the stable complex, generating up to £130,000 per year until 2020. Princess Alexandra lives in Thatched House Lodge in Richmond Park, paying an annual ground rent of £1,500 after a premium payment of £670,000 in 1995. Her daughter Marina Ogilvy pays £17,436 annually for a cottage on the Windsor Estate.
Andrew and His Daughters
The report further reveals that Prince Andrew, despite paying a peppercorn rent for Royal Lodge, sublet three cottages on the estate, pocketing the income. He will not receive compensation for giving up the lease early due to dilapidation costs. His daughters, Princesses Beatrice and Eugenie, have their rent for apartments in St James' Palace and Kensington Palace paid by the King from the Privy Purse, with no personal contribution. Eugenie paid for renovations to her cottage herself.
Reactions and Calls for Transparency
A Buckingham Palace spokesperson welcomed the report, stating it aligns with the Royal Household's commitment to transparency. The Crown Estate also welcomed the review, confirming leases were agreed with independent advice. However, author Norman Baker called for a full parliamentary inquiry into royal funding, warning that support for a republic is growing, especially among young people.
