A National Audit Office (NAO) report has disclosed that Prince Andrew received private income by subletting three cottages on his Windsor Royal Lodge estate while paying a nominal 'peppercorn rent' to the Crown Estate. The report, published on Friday, forms the basis of a Commons public accounts committee inquiry into royal property arrangements.
The NAO review also reveals that King Charles pays an 'adjusted rent' from his private Duchy of Lancaster income for his nieces, Princesses Beatrice and Eugenie, to reside 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%.
Meanwhile, the Prince and Princess of Wales signed a 20-year lease in July for Forest Lodge in Windsor, paying £307,200 annual rent, with no upfront premium. The Crown Estate carried out £400,000 repairs before the couple moved in. William and Catherine are responsible for internal refurbishments.
Prince Andrew, now evicted to Marsh Farm in Norfolk, had a lease permitting subletting, though the income generated is unknown. He paid a £1m premium and £7.5m on refurbishment of Royal Lodge in 2003. The NAO report notes he could be entitled to compensation of up to £488,342 for surrendering the lease early, but the Crown Estate has indicated no compensation may be due after accounting for dilapidations.
Sources suggest the subletting did not generate profit, with rent covering only maintenance and running costs. However, no detailed figures have been made public. Former Liberal Democrat minister Norman Baker criticised the arrangement, stating it added 'insult to injury' that Andrew could profit from subletting while paying a peppercorn rent.
The Duke and Duchess of Edinburgh also generate income from renting out the stable block at Bagshot Park, where they pay a peppercorn rent after a £5m premium. The NAO report highlights differing rent and lease arrangements for royals, depending on accommodation necessity and property management by the Crown Estate or royal household.
