Royal Lodge Sublets: Former Prince Andrew Generated Income from Rent-Free Estate

A recent audit by the UK's National Audit Office (NAO) has shed light on the private financial arrangements of Andrew Mountbatten-Windsor, formerly known as Prince Andrew. The report indicates that he generated income by subletting cottages on the grounds of his former residence, Royal Lodge, a property he occupied rent-free for nearly two decades under a unique lease agreement. This revelation comes amid ongoing scrutiny of the financial ties and privileges afforded to senior, and formerly senior, members of the British Royal Family.

The NAO report confirms that Mountbatten-Windsor received income from renting out three cottages located on the Royal Lodge estate near Windsor Castle. The lease for the property, signed in 2003, allowed him to occupy the main mansion and sublet the cottages, with the "income generated payable to Andrew Mountbatten-Windsor." The report noted that these specific properties have been vacant since April 2026, as he has since moved to the Sandringham estate in eastern England following his removal from official royal duties.

Details of the Royal Lodge Lease and Sublets

The financial arrangement for Royal Lodge is particularly notable. The lease required Mountbatten-Windsor to pay only a nominal fee, often referred to as a "peppercorn rent," for the entire 30-room mansion and its surrounding eight cottages. This arrangement granted him the use of a substantial estate for a minimal cost, while explicitly allowing him to sublet three of the cottages for his own financial benefit. The exact amount of income he derived from these sublets was not disclosed in the NAO report, a point of criticism from Labour Member of the House of Lords, Margaret Hodge, who described the lack of full financial transparency as "shocking."

Housing Arrangements for Princesses Beatrice and Eugenie

The NAO audit also addressed the living situations of Mountbatten-Windsor's daughters, Princess Beatrice and Princess Eugenie. The report states that both princesses reside in rent-controlled homes owned by the Crown. Princess Eugenie lives in a cottage on the grounds of Kensington Palace, while Princess Beatrice resides at St. James's Palace. Their rents are set at a portion of the open-market value and are paid from the Privy Purse, the private funds of King Charles III. Neither princess is considered a "working royal" with public duties, and both pursue private careers: Eugenie as a director at an art gallery and Beatrice as a vice-president at a software firm.

Broader Royal Property Transparency

The NAO report was conducted at the request of lawmakers following the stripping of Mountbatten-Windsor's royal titles and his departure from Royal Lodge amid controversies related to his association with the late convicted sex offender Jeffrey Epstein. Buckingham Palace responded by stating that the report "is in line with the royal household’s commitment to transparency" and expressed hope that the findings would help correct or contextualize various points regarding royal properties. The audit reveals that 11 royals are granted free housing on palace properties in exchange for their public duties, including King Charles, Queen Camilla, and the Prince and Princess of Wales, who pay a substantial market-rate rent for their family home near Windsor.

In conclusion, the NAO's findings provide a detailed look into the complex financial ecosystem surrounding royal residences, highlighting that while some senior royals receive housing in exchange for official duties, others, like Mountbatten-Windsor, have benefited from unique lease terms that allowed for personal profit-making through subletting. The ongoing debate centers on the balance between private financial arrangements and public accountability for those associated with the monarchy.