A National Audit Office report published on Friday, June 5, 2026, revealed that Prince Andrew generated private income by subletting three cottages on his Windsor Royal Lodge estate while paying a nominal 'peppercorn rent' to the crown estate.
The review also disclosed that King Charles pays a discounted rent from his private Duchy of Lancaster income for his nieces, Princesses Beatrice and Eugenie, to live in royal palaces.
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Their rents are typically 60% of open market value due to security restrictions within cordoned royal areas.
Additionally, the report noted that the Prince and Princess of Wales moved into their Forest Lodge home last year after £400,000 in repairs funded by the crown estate.
William and Catherine pay £307,200 annually under a 20-year lease signed in July.
The findings will form the basis of an upcoming Commons public accounts committee inquiry into royal housing arrangements, following public outcry over the financial terms of the disgraced prince's former Windsor mansion.
Former Liberal Democrat minister Norman Baker criticized the property arrangements for the Duke of York.
'Not only that Andrew was able to have a peppercorn rent for a gigantic property, but then to make potentially millions on the side from subletting properties.
The money should have gone to the crown estate, not into [his] pockets,' Baker said.
The report also noted that Prince Edward and the Duchess of Edinburgh pay a peppercorn rent for Bagshot Park and previously generated income by renting out its stable block until 2020.
The National Audit Office clarified that leasing standards remained generally consistent across the royal properties over a multi-decade span.
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'Generally, we found [the crown estate] applied standard practices across the leases we examined and in line with its processes.
Where we found differences, these related to specific terms within lease agreements for the same lease type.
Each lease was agreed at different points in time over a 50-year period, so some variation in practice and outcomes is to be expected,' the report stated.
The crown estate welcomed the findings and noted its compliance with professional real estate assessments.
'The crown estate welcomes the National Audit Office’s review, which confirms its leases with members of the royal family were agreed in line with independent, professional advice and open market valuations.
We look forward to discussing the report further with the public accounts committee in due course,' a spokesperson said.
Buckingham Palace expressed appreciation for the independent review and its contribution to transparency.
'We are grateful to the National Audit Office for this report, which is in line with the royal household’s commitment to transparency.
We hope that the findings will help correct, clarify or contextualise a number of points regarding royal properties.
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As the report notes, arrangements for properties managed by the royal household vary based on a number of factors to ensure residences are filled appropriately, depending on their location, tenants and purpose,' a spokesperson said.
