After a new report disclosed the royals who aren’t paying their way, we reveal who the culprits are and what properties they rent
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A new report has revealed details of Royal Family members’ housing agreements, including the King footing the bill for Beatrice and Eugenie, Andrew Mountbatten-Windsor’s undisclosed rental income and that the Duke and Duchess of Edinburgh also benefited from subletting their crown estate property.
The investigation by the National Audit Office (NAO) was triggered by a public outcry last October, following revelations that the former prince, Andrew Mountbatton-Windsor, had spent two decades generating a private income by subletting three cottages on his Windsor Royal Lodge estate while paying only a token “peppercorn rent” to the Crown Estate.
The investigation, published on June 5, 2026, is the first comprehensive review of royal housing in 20 years. It will form the basis of an upcoming Commons Public Accounts Committee inquiry.
The findings have fueled accusations that the Royal Family has shown “total contempt for the taxpayer,” particularly regarding financial support provided to non-working members
Andrew Mountbatton-Windsor:
The inquiry was triggered after a public outcry over revelations that the former prince was paying a peppercorn rent on the Royal Lodge estate in Windsor before he was evicted to Marsh Farm in Norfolk by the king.
Andrew was entitled to sublet up to three properties on the Royal Lodge estate in Windsor Great Park under the terms of his lease. The audit revealed he spent two decades generating an undisclosed private income by subletting three cottages on his Windsor Royal Lodge estate.
Because Andrew paid £7.5 million for repairs when taking on the lease, he was exempt from monthly rent, paying only a token “peppercorn rent” to the Crown Estate.
While the NAO noted that the exact generated income figures are private, sources say the rent only covered the estate’s steep maintenance costs.
Andrew’s subletting arrangements ended in April 2026. He vacated Royal Lodge earlier this year, moving to the King’s private Sandringham estate in Norfolk following his arrest on suspicion of misconduct in public office related to his links to Jeffrey Epstein.
It is also not known whether Andrew’s sublet properties were consistently rented out, but his subletting of the residences ended in April 2026.
Princess Beatrice and Princess Eugenie
The daughters of Andrew Mountbatten-Windsor and former Duchess Sarah Ferguson, who are non-working royals and do not perform royal duties, live rent free in occupied royal palaces, with the King footing their bill, the report said.
King Charles pays both rents out of his private Duchy of Lancaster income, continuing an arrangement made by his mother, Queen Elizabeth II, which is kept under regular review.
Rent is adjusted because the properties are behind security cordons requiring security vetting for tenants.
The report found the rents set for their accommodation were also based on out-of-date valuations, the NAO found. Princess Eugenie’s rent for Ivy Cottage in Kensington Palace is based on the 2018 valuation between 2020 and 2021 and Princess Beatrice’s apartment in St James’s Place on a 2020 valuation.
The princesses were then only required to pay a percentage of that value, with both paying a percentage between 50% to 68% of the market rent since 2020.
Maintenance and operational costs of occupied royal palaces are met by public funds through the sovereign grant, which pays for the royal family’s official duties and the upkeep of royal palaces.
Eugenie is said to have carried out refurbishments at Ivy Cottage at her own expense.
The Duke and Duchess of Edinburgh
The King’s brother and his wife were also found to pay a peppercorn rent after signing a long lease of 150 years in 2007 for Bagshot Park in Surrey with an upfront payment of £5m to the crown estate.
Under their crown estate lease, Edward and Sophie are entitled to sublet on the Bagshot Park estate. They generated a private income by renting out the property, letting out the stable to a third party in 2020.
It is understood they invested significant capital to convert the stable block to let it out. Of two further units within the stables footprint, one is used by member of staff and their family at a rate in line with the household’s policy for staff, while another is a storage facility which has previously been used by the Royal Collection Trust, but is not currently in use
Edward and Sophie previously held a lease from 1998 to 2007, and committed to spend £1.38m on restoration.
They also have a rent-free apartment at St James’s Palace, London, managed by the royal household, in return for performing royal duties.
Prince and Princess Michael of Kent
The late Queen’s cousin and his wife sparked a scandal in 2002 when it emerged they paid a token £69 a week for a grand Kensington Palace apartment, despite being non-working royals.
Following MP protests, it was agreed they would pay a commercial rate of £120,000 a year from 2009. However, the report reveals the “Rent-a-Kents” never paid their own way;
Queen Elizabeth II privately agreed to keep funding them, an arrangement King Charles continues via the Privy Purse at 63% of market value.
The Prince and Princess of Wales
William and Kate pay £307,200 a year for their home, Forest Lodge in Berkshire, and have avoided peppercorn rent accusations.
The report said the couple signed a “short-term 20-year lease” with quarterly rent payments of £76,800 every three months, and no upfront deposit because they pay for all internal refurbishment costs.
But the Crown Estate paid £396,993 for repairs before the couple moved in.
Former Liberal Democrat minister Norman Baker, who has long been a critic of royal finances, said: “The whole thing is outrageous. If you look at Andrew, this is adding insult to injury. ”
“It shows an absolute total contempt for the taxpayer, not only that Andrew was able to have a peppercorn rent for a gigantic property, but then to make potentially millions on the side from subletting properties.
“The money should have gone to the Crown Estate, not into his pockets.”
