Andrew was sub-letting Royal Lodge cottages, NAO report reveals

A recent report from the National Audit Office (NAO) has revealed that Andrew Mountbatten-Windsor received income from sub-letting three cottages on the Royal Lodge estate. He leased this land from the Crown Estate. The NAO is the public spending watchdog in the United Kingdom. This report is the first of its kind to examine royal residences in twenty years.

The findings show that Andrew Mountbatten-Windsor, his family, and their staff had access to twelve properties. These properties were owned either by the Crown Estate or the Royal Household. Andrew Mountbatten-Windsor is the father of Princesses Eugenie and Beatrice. They are members of the royal family but do not work as full-time royal officials.

A spokesperson for Buckingham Palace stated that the report aligns with the Royal Household’s commitment to transparency. The spokesperson hoped that the findings would help clarify the public’s understanding of royal property arrangements.

The report confirms that Princess Eugenie resides in Kensington Palace, while Princess Beatrice lives in St James’s Palace. Neither princess pays rent for these central London homes. Instead, the rent is paid by the monarch. The monarch uses the privy purse, which is his personal money, to pay the Royal Household. This arrangement ensures that the princesses have housing without paying out of pocket.

The palaces themselves are maintained using public funds through the Sovereign Grant. This grant pays for the official duties of the monarchy. Critics of the royal finances argue that this arrangement is unfair. Norman Baker, a former Home Office minister, called the subsidy of luxury accommodation outrageous. He stated that the public is being taken for a ride and that such practices are no longer sustainable.

However, a palace source explained that the rent paid for these properties covers any publicly funded expenditure. Therefore, there is no extra cost to the Sovereign Grant. The NAO report did not specify the exact amount of rent paid for the princesses. However, the rent level is typically set at sixty percent of the open market rate.

The report was prompted by the scandal surrounding Andrew Mountbatten-Windsor. It will be followed by an inquiry by the Public Accounts Committee, which is a group of Members of Parliament (MPs). The report details that Andrew Mountbatten-Windsor still holds a lease on Royal Lodge until October 2026, even though he moved to Sandringham in Norfolk earlier this year.

The NAO report does not suggest any wrongdoing by Andrew Mountbatten-Windsor. In addition to the main building at Royal Lodge, there were eight nearby properties. His lease allowed him to sub-let three of these cottages. He did so until April 2026. The report does not state how much income he received from this sub-letting.

Palace sources suggest that he rented the cottages to staff or retired staff. The income was likely just enough to cover the running costs of the properties. Whatever the amount, it went directly to Andrew Mountbatten-Windsor rather than to the Crown Estate. If the money had gone to the Crown Estate, those profits would have been paid back to the government Treasury.

Andrew Mountbatten-Windsor had previously paid £7.5 million for repairs to Royal Lodge when he took on the lease. This large payment meant he did not have to pay a monthly rent. He also had a separate lease for a property called East Lodge. The BBC had previously revealed that this lease was to be handed back to the Crown Estate.

The princesses have other homes as well. They have properties in the Cotswolds and in Portugal, in addition to their royal residences in the palaces. The NAO report also revealed that the Crown Estate paid for repairs worth almost £400,000 before the Prince and Princess of Wales moved into their home at Forest Lodge in Windsor.

Princess Michael of Kent, another non-working royal, also has a property in Kensington Palace. Her rent is also paid by the privy purse. In total, eleven working royals have accommodation in the palaces without charge. This accommodation is provided in exchange for their official duties.

These working royals include the King and Queen, the Princess Royal, the Duke and Duchess of Edinburgh, the Duke and Duchess of Gloucester, the Duke of Kent, and Princess Alexandra. The Prince and Princess of Wales also have an apartment in Kensington Palace. They also have a Crown Estate property. Additionally, twenty-one other royal post-holders, including seventeen military knights, have accommodation without charge in the occupied palaces.

The NAO report does not make judgments on value for money. It does not draw conclusions about the fairness of the arrangements. Its primary purpose is to provide information for the MPs on the Public Accounts Committee. Lee Summerfield, the director of the NAO, stated that their role is to set out the facts. She explained that the investigation outlines the processes and arrangements from both the Crown Estate and the Royal Household.

A spokesperson for The Crown Estate welcomed the review. They stated that the NAO review confirms that their leases with members of the royal family were agreed upon based on independent, professional advice. The leases were also based on open market valuations. The spokesperson emphasized that the arrangements vary based on several factors. These factors include the location of the residence, the tenants, and the purpose of the property.

The Royal Household maintains that these variations ensure residences are filled appropriately. The goal is to use the properties efficiently while supporting the monarchy’s official functions. The report provides a detailed look at how the royal family’s housing is managed. It highlights the complex financial arrangements that support both working and non-working members of the royal family.

The revelations about Andrew Mountbatten-Windsor’s sub-letting activities have drawn attention to the flow of money within the royal estate. While the income was likely used to maintain the cottages, the fact that it went to him personally rather than the public purse has raised questions. The ongoing inquiry by the Public Accounts Committee will likely delve deeper into these financial details.

The broader context of the report is the public’s interest in royal finances. After years of scrutiny regarding royal spending, any new information about income and expenses is closely watched. The report aims to provide clarity in a complex system. It seeks to balance the needs of the monarchy with the expectations of public accountability.

The use of the privy purse for non-working royals is a point of contention. Critics argue that taxpayer money should not support the lifestyle of royals who do not perform official duties. Supporters argue that these arrangements are historic and necessary for the functioning of the monarchy. They point out that the rent paid covers the costs of maintenance and management.

The report’s findings will serve as a basis for further discussion in Parliament. The Public Accounts Committee will review the data and may recommend changes to current practices. The royal family and the Crown Estate have expressed their willingness to cooperate with the investigation. They emphasize their commitment to transparency and good governance.

Ultimately, the report provides a snapshot of a unique and complex system. It highlights the differences between working and non-working royals. It also sheds light on the financial obligations of individual members of the royal family. The details surrounding Andrew Mountbatten-Windsor’s lease and sub-letting activities are just one part of a larger picture. The full implications of these findings may not be clear until the parliamentary inquiry is complete.