The UK’s spending watchdog has exposed how Prince Andrew, the disgraced younger brother of King Charles III, generated private income by subletting three cottages on the Windsor Royal Lodge estate while paying a peppercorn rent to the Crown Estate. A National Audit Office (NAO) report published on Friday details how Andrew Mountbatten-Windsor held leases for ten properties, three of which he sublet, despite occupying the estate at a fraction of market value.
The NAO’s review, the most detailed examination of royal property arrangements to date, reveals that Andrew’s leases were based on commercial valuations for some properties, while others carried negligible or no rent at all. The report also discloses that King Charles pays adjusted rents—below open market value—from his private Duchy of Lancaster income for the non-working royal daughters, Princesses Beatrice and Eugenie, to reside in royal palaces. The arrangement has raised further questions about the transparency and fairness of the Crown Estate’s lease agreements with senior royals.
According to the NAO, Andrew’s subletting of the three cottages generated private income, though the exact financial details remain undisclosed. The report does not specify the rental income or the identities of the subtenants, but it underscores the potential for conflict between the Crown Estate’s public obligations and the private financial activities of its royal leaseholders. The NAO’s findings come amid ongoing scrutiny of the monarchy’s finances and the use of public assets by its members.
The revelation adds to the long-standing controversies surrounding Prince Andrew, who stepped back from public duties in 2019 following his association with convicted sex offender Jeffrey Epstein. The latest disclosures follow earlier reports that Andrew lived rent-free in the Royal Lodge until recently, despite his reduced role within the royal family. The NAO’s report does not address whether Andrew’s subletting activities violated any specific rules, but it highlights the need for clearer guidelines on the use of royal properties and the financial arrangements tied to them.
In response to the report, a spokesperson for the Crown Estate stated that all lease agreements are reviewed regularly to ensure they align with public and commercial interests. The NAO has called for greater transparency in the valuation and leasing of royal properties, suggesting that future reviews should include more granular financial disclosures. The findings are likely to fuel further debate about the monarchy’s use of public resources and the accountability of its senior members.
The NAO’s report arrives at a time when the British monarchy faces increasing pressure to modernise its operations and justify its public funding. As the royal family navigates these challenges, the latest revelations about Prince Andrew’s property dealings are sure to intensify calls for reform.
Prince Andrew sublets royal cottages while paying peppercorn rent, NAO reveals