A National Audit Office report has disclosed that Andrew Mountbatten-Windsor received rental income from sub-letting three cottages on the Royal Lodge estate, which he leased from the Crown Estate.
The report, which examined residential property arrangements with members of the royal family, did not specify the amount of rental income received from the sub-lettings.
Royal Lodge arrangements
According to the NAO findings, Mountbatten-Windsor paid £7.5 million for repairs when he took on the Royal Lodge lease, which allowed him to avoid monthly rent payments. The lease included the main building and eight nearby properties, three of which were permitted to be sub-let under the terms of the agreement.
The cottages were sub-let until April 2026, with palace sources indicating the properties were rented to staff or retired staff at rates designed to cover running costs. Mountbatten-Windsor’s lease on Royal Lodge continues until October 2026, despite his relocation to Sandringham in Norfolk earlier this year.
Additional accommodation arrangements
The watchdog report also revealed that the King pays rent from the privy purse for accommodation occupied by Mountbatten-Windsor’s daughters, Princesses Eugenie and Beatrice, who are not working royals. Princess Eugenie occupies a property in Kensington Palace, while Princess Beatrice resides in St James’s Palace.
Both palaces are maintained through public funding via the Sovereign Grant, though the rent for the princesses’ accommodation is paid by the monarch’s personal funds to the Royal Household.
These arrangements highlight ongoing questions about royal property usage at a time when social housing waiting lists continue to grow and landlord licensing schemes expand across UK regions.
Transparency commitment
A Palace spokesperson stated: “We are grateful to the National Audit Office for this report, which is in line with The Royal Household’s commitment to transparency. We hope that the findings will help correct, clarify or contextualise a number of points regarding Royal properties. As the report notes, arrangements for properties managed by the Royal Household vary based on a number of factors to ensure residences are filled appropriately, depending on their location, tenants and purpose.”
The NAO report forms part of broader scrutiny of royal property arrangements and the use of public funds in maintaining royal residences.
