The UK’s National Audit Office (NAO) has raised fresh questions about the use and funding of royal properties, following a report examining arrangements involving members of the Royal Family and Crown-owned residences.
According to the findings, Andrew Mountbatten-Windsor had been sub-letting three cottages on the Royal Lodge estate, which he occupies under a long-term lease from the Crown Estate. The report noted that this arrangement continued until April 2026 and formed part of wider scrutiny of royal property usage.
The audit also highlighted that King Charles III has personally covered rental costs for accommodation used by Princess Eugenie and Princess Beatrice, despite neither of them being working royals. Their residences include apartments within Kensington Palace and St James’s Palace, both of which are maintained through public funding via the Sovereign Grant system.
The report revealed that Andrew, his household, and staff have used around 12 properties linked to either the Crown Estate or the Royal Household. He previously paid £7.5 million for renovation works on the Royal Lodge lease in 2003, under an agreement that allowed him to pay a nominal rent.
While palace sources have downplayed concerns, stating that any rental income from sub-letting was mainly used to cover maintenance costs or provided to staff and former staff, the arrangement has sparked public debate.
Critics argue that the system raises concerns about fairness and public spending, particularly given that some royal residences are supported by taxpayer funding. They question the continued provision of high-value housing arrangements for non-working royals, especially at a time when housing costs remain a major issue for many residents in the UK.
The report has intensified calls for a review of royal property arrangements and greater transparency in how publicly supported residences are allocated and funded.
