Audit reveals Prince Andrew earned rental income from Royal Lodge cottages, as MPs prepare to scrutinise complex royal property arrangements and funding structures, reports Asian Lite News Desk
A report by the National Audit Office has shed fresh light on the financial and housing arrangements surrounding Andrew Mountbatten-Windsor, revealing that he received rental income from sub-letting cottages on the Royal Lodge estate while leasing the property from the Crown Estate.
The findings come as part of the first comprehensive review of royal residential arrangements in two decades, commissioned following mounting scrutiny over how properties linked to the Royal Family are funded and managed. The report is expected to inform a forthcoming inquiry by MPs on the Public Accounts Committee.
According to the audit, Andrew held a lease on Royal Lodge in Windsor Great Park, which included not only the main residence but a cluster of additional cottages. The terms of the lease permitted the sub-letting of three of these properties, a provision he exercised until April 2026, the BBC reported quoting the report.
While the exact income generated from these arrangements has not been disclosed, the report confirms that any rental proceeds were retained by Prince Andrew rather than returned to the Crown Estate, whose surplus revenues are typically transferred to the Treasury. Palace sources indicated the cottages were rented to staff or former staff and suggested the income covered maintenance and running costs, though no figures were provided.
The NAO made clear there is no suggestion of wrongdoing in these arrangements. However, the disclosures have reignited debate about transparency and value for money in royal property use, particularly where public assets intersect with private benefit.
The report also highlights the broader scale of property access linked to Prince Andrew and his family. At one stage, they had use of 12 properties owned either by the Crown Estate or the Royal Household. Although Prince Andrew vacated Royal Lodge earlier this year and moved to Sandringham in Norfolk, he retains the lease on the Windsor property until October 2026.
Financial arrangements tied to royal residences extend beyond the Duke of York. The report reveals that Princesses Princess Eugenie and Princess Beatrice, both daughters of Prince Andrew and not working royals, have accommodation in central London palaces. Princess Eugenie resides in Kensington Palace, while Princess Beatrice has a home in St James’s Palace.
In both cases, rent for these properties is paid not by the occupants but through the Privy Purse, the monarch’s private income, which is channelled via the Royal Household. Maintenance costs for these historic buildings, however, are covered through the publicly funded Sovereign Grant, adding a further layer of complexity to how royal housing is financed.
The NAO report outlines that such arrangements sit within two distinct systems. The Crown Estate operates as a commercial property portfolio, returning profits to the Exchequer, while the Royal Household manages accommodation tied to official duties and funded through a mix of private and public resources. Members of the Royal Family can have relationships with both entities under differing financial terms.
Elsewhere, the audit notes that the Crown Estate spent nearly £400,000 on refurbishments at a Windsor property ahead of its occupation by the Prince and Princess of Wales. It also confirms that other non-working royals, including Princess Michael of Kent, receive accommodation supported by the Privy Purse.
At the same time, 11 working royals, including the King and Queen, the Princess Royal, and the Duke and Duchess of Edinburgh, are provided housing within royal palaces without charge in recognition of their official roles. A further 21 individuals holding ceremonial or military positions, such as knights, also benefit from rent-free accommodation within occupied royal estates.
The report does not attempt to draw conclusions on value for money or make recommendations, instead presenting a factual overview intended to support parliamentary scrutiny. A spokesperson for Buckingham Palace said the findings were consistent with the Royal Household’s commitment to transparency, BBC reported.
The revelations are likely to intensify political and public interest ahead of the Public Accounts Committee’s inquiry, particularly as questions persist over how royal assets are used and whether current arrangements strike the right balance between tradition, accountability and public value.
