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NAO Report Details Royal Property Sub-Letting and Rental Arrangements

A National Audit Office (NAO) report has disclosed that Andrew Mountbatten-Windsor received rental income from sub-letting three cottages on the Royal Lodge estate, which he leases from the Crown Estate. The report also outlined rental arrangements for Princesses Eugenie and Beatrice, who occupy royal properties with rent paid by the King from the privy purse.

The NAO report examined residential property arrangements involving members of the royal family. According to the 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 covers the main building and eight nearby properties, with three cottages permitted to be sub-let under the agreement. The report did not specify the amount of rental income received from these sub-lettings.

The three cottages were sub-let until April 2026. Palace sources indicated that these 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.

The NAO report also revealed that the King pays rent from the privy purse for accommodation occupied by Mountbatten-Windsor’s daughters, Princesses Eugenie and Beatrice. Princess Eugenie resides in a property at Kensington Palace, while Princess Beatrice lives at St James’s Palace. Both palaces are maintained through public funding via the Sovereign Grant, but the rent for the princesses’ accommodation is paid by the monarch’s personal funds to the Royal Household.

A Palace spokesperson stated that the Royal Household is committed to transparency and welcomed the NAO report. The report forms part of broader scrutiny of royal property arrangements and the use of public funds in maintaining royal residences.