Full Breakdown
National Audit Office Finds King Charles Pays Rent for Princesses Beatrice and Eugenie
6/5/2026, 8:47:22 PM
King Charles Covers Rent for Non-Working Princesses
A National Audit Office (NAO) review of royal residential arrangements confirms that King Charles III pays the rent for Princess Beatrice’s apartment in St James’s Palace and Princess Eugenie’s Ivy Cottage in Kensington Palace. The payments are made from the Privy Purse, the monarch’s private fund derived largely from the Duchy of Lancaster. The report notes that the rents are discounted relative to open-market rates because the properties require security clearance.
Royal Housing Policy and the Privy Purse
Royal-household policy stipulates that non-working members occupying occupied palaces are charged an adjusted rent of roughly 60 % of open-market value. The Privy Purse, funded by the Duchy of Lancaster, is used to meet such costs when the royal household deems them appropriate. The NAO indicates that the arrangement for the sisters continues a practice initiated by the late Queen Elizabeth II, who originally covered their accommodation.
Rental Valuations and Estimated Costs
- Princess Eugenie: Rent was set at 50 % of the 2018 market value (2020-21), rising to 55 % (2022), 60 % (2023), 63 % (2024) and 64 % of the 2026 valuation.
- Princess Beatrice: Rent was 60 % of the 2020 market value (2020-21), increasing to 62 % (2022) and 68 % by 2026.
- Property-valuation experts estimate that comparable open-market rents could be £10,000-£15,000 per month for Ivy Cottage and £15,000-£20,000 per month for the St James’s apartment. Applying the disclosed percentages yields approximate King-funded payments of £9,600 per month for Eugenie and £13,600 per month for Beatrice. The NAO did not disclose the exact amounts paid.
Official Statements & Responses
- A Crown Estate spokesperson said the review “confirms its leases with members of the royal family were agreed in line with independent, professional advice and open market valuations” and that the estate “looks forward to discussing the report further with the Public Accounts Committee.”
- A Buckingham Palace spokesperson expressed gratitude for the NAO report, noting it aligns with the royal household’s “commitment to transparency” and that the findings “will help correct, clarify or contextualise a number of points regarding royal properties.”
Criticism & Opposition
Former Liberal Democrat minister Norman Baker criticised the arrangement, stating, “There’s no way that non-working members of the Royal family should be subsidised by the Duchy of Lancaster. The royal family is yet again taking the public for a complete ride.” He added that the practice shows “an absolute total contempt for the taxpayer.”
Conflicting Reports & Gaps
The NAO deliberately omitted the precise sums the King pays, describing them as private. It also highlighted that the sisters’ rent calculations relied on out-of-date market valuations (2018 for Eugenie, 2020 for Beatrice), and that the basis for some adjustment percentages was not fully documented. These omissions leave the exact fiscal impact on the Privy Purse unclear.
Verbatim Quotes
- “There’s no way that non-working members of the royal family should be subsidised by the Duchy of Lancaster. The royal family is yet again taking the public for a complete ride.” — Norman Baker, former Liberal Democrat minister
- “The Kensington location alone commands substantial rents, while the palace setting would make it one of London's most unusual and desirable residential addresses,” — Robin Edwards, property-buying agent, Curetons
- “A private three-bedroom apartment of reasonable size within the palace grounds could realistically attract rents of £15,000 to £20,000+ per month if ever offered on the open market.” — Robin Edwards, property-buying agent, Curetons
- “The arrangement was put in place by the princesses’ late grandmother, Queen Elizabeth , and King Charles has continued with it, a royal source says, paying it from the Privy Purse.” — Royal source cited by People
What’s Next
The NAO’s findings will be examined by the House of Commons Public Accounts Committee, which has signalled further scrutiny of royal-property leases and the value for money of discounted rents. The committee’s inquiry may prompt revisions to valuation practices or greater disclosure of Privy Purse expenditures.
