Andrew Mountbatten-Windsor has been caught up in a scandal, as the public spending watchdog revealed that he received an undisclosed rental income from sub-letting three cottages on the Royal Lodge estate, which he leases from the Crown Estate. This revelation comes from a National Audit Office (NAO) report, marking the first investigation into royal residences in 20 years. It turns out that the King also covers the rent for the accommodations of Mountbatten-Windsor’s daughters, Princesses Eugenie and Beatrice, who aren’t working royals.
Now, here’s where it gets interesting. The report shows that Mountbatten-Windsor and his family, alongside their staff, have access to a whopping 12 properties owned by the Crown Estate or the Royal Household. A spokesperson from Buckingham Palace stated that the findings are “in line with the Royal Household’s commitment to transparency.” When Mountbatten-Windsor took on the lease for Royal Lodge, he paid £7.5 million for repairs, which meant he could skip monthly rent payments altogether.
The watchdog’s findings reveal that Princess Eugenie is living it up in Kensington Palace, while Princess Beatrice has her digs in St James’s Palace. And get this: they don’t pay rent either! Their accommodations are funded by the “privy purse,” which is essentially the King’s personal funds, while the palaces are maintained through public money from the Sovereign Grant. Norman Baker, a former Home Office minister and a known critic of royal finances, called it “outrageous to subsidise luxury accommodation” this way, arguing that the public is “being taken for a ride.” He expressed that such arrangements should no longer be sustainable as “deference is wearing thin indeed.”
According to a Palace source, the rent for these properties for non-working royals is supposed to cover any publicly funded expenses—so taxpayers shouldn’t be worried about extra costs. But the report doesn’t specify how much rent is being paid for the princesses’ properties, which should ideally be around 60% of the open market rate. While there’s no indication of illegal activities, the optics of the arrangement could be uncomfortable for the Palace, particularly when so many young people are struggling with high rents and the housing market.
The NAO report was triggered by the scandal surrounding Andrew Mountbatten-Windsor and is set to be followed by an inquiry from MPs on the public accounts committee. Even though Mountbatten-Windsor vacated Royal Lodge earlier this year, moving to Sandringham in Norfolk, he still holds the lease until October 2026. The report outlines that alongside the main Royal Lodge building, there are eight other nearby properties, three of which he’s allowed to sub-let, a practice he continued until April 2026.
Details on how much he earned from sub-letting remain undisclosed, but Palace insiders suggest he rented to staff or retired staff, with the earnings reportedly only enough to cover running costs. Regardless of the amount, the income went to Mountbatten-Windsor rather than the Crown Estate, which typically funnels its profits back to the Treasury.
Moreover, Mountbatten-Windsor’s daughters own additional properties in the Cotswolds and Portugal, adding to their royal lifestyle. The report also highlights that the Crown Estate spent nearly £400,000 on repairs before the Prince and Princess of Wales moved into their Windsor home at Forest Lodge. Meanwhile, Princess Michael of Kent, another non-working royal, resides in Kensington Palace, also funded by the privy purse.
Interestingly, eleven working royals live in the palaces without charge in exchange for their official duties. The report found that 21 other royal post-holders, including 17 military knights, enjoy similar accommodations without cost. While the NAO report doesn’t make any value judgments or conclusions, it aims to furnish MPs on the public accounts committee with the necessary facts. NAO director Lee Summerfield emphasized their role in laying out the facts of the situation.
In the Palace’s response, they expressed gratitude for the report, viewing it as a means to clarify various points regarding royal properties. They stated that property arrangements managed by the Royal Household vary based on multiple factors to ensure residences are filled appropriately, considering their location, tenants, and purpose. A spokesperson for the Crown Estate remarked that the review confirms their leases with royal family members were made following independent advice and market valuations.
Baroness Margaret Hodge, a former chairwoman of the Public Accounts Committee, expressed her shock over the NAO’s inability to determine how much money Mountbatten-Windsor made from the properties he rented out. She raised concerns about the appropriateness of taxpayer-funded subsidies for non-working royals, reminding everyone that the Crown Estate is taxpayer money, not theirs.
So, what does this mean for the future of royal accommodations? Will the scrutiny lead to changes in how these arrangements are made? Only time will tell.
Kaynak: Orijinal Haber