Royal Leases Route Income Past Treasury Returns

The National Audit Office report confirms that Andrew Mountbatten-Windsor sub-let three cottages on the Royal Lodge estate under his Crown Estate lease and retained the rental income until April 2026. The same document shows the King covers rent for two non-working royals in Kensington and St James’s palaces through the privy purse, while public funds maintain the buildings.

The arrangement covers 12 properties used by Andrew and his family. Andrew paid £7.5 million in repairs upon taking the Royal Lodge lease, which removed any monthly rent obligation. He continues to hold that lease until October 2026 despite moving to Sandringham earlier this year.

Princess Eugenie occupies a Kensington Palace property and Princess Beatrice one in St James’s Palace. Neither pays rent directly. The privy purse transfers the cost to the Royal Household, and both palaces receive Sovereign Grant maintenance. Princess Michael of Kent holds a similar Kensington Palace arrangement.

Eleven working royals receive rent-free palace accommodation in exchange for duties. Twenty-one additional post-holders, including military knights, also occupy such housing without charge. The Crown Estate funded nearly £400,000 in repairs at Forest Lodge ahead of the Prince and Princess of Wales moving in.

The report supplies no figure for the sub-let income Andrew received. Palace sources claim it covered only running costs and went to staff tenants. The Crown Estate normally returns profits to the Treasury. Baroness Margaret Hodge noted the NAO could not determine the exact sums involved.

These provisions operate under rules set decades ago and reviewed only after external pressure. The NAO conducted its first royal residences examination in 20 years following earlier controversies. The public accounts committee will now examine the findings.

Young people face record rents and limited ownership access while non-working royals occupy central London properties at reduced effective cost. The privy purse payment is presented as offsetting public expenditure, yet the underlying assets and maintenance draw from taxpayer-supported sources.

The structure repeats across administrations. Successive governments have left royal property terms outside standard public spending controls. The NAO states it records processes rather than assessing value for money.