Full Breakdown
Subletting at Royal Lodge: Audit Reveals Undisclosed Income and Calls for Reform
6/6/2026, 2:28:38 AM
Subletting of Royal Lodge Cottages
The NAO report (5 June 2026) confirms Andrew Mountbatten-Windsor sublet three of eight cottages on Royal Lodge while living rent-free. His 2003 75-year lease required only a pepper-corn rent after a £1 million premium and £7.5 million in renovations. Audit could not determine the rent.
Lease Terms and Property Context
Royal Lodge is a Crown Estate property. The 2003 lease allowed subletting up to three cottages and set a nominal pepper-corn rent, meaning no regular payments. The £7.5 million renovation cost reduced the upfront premium.
Principal Figures and Their Housing
Andrew Mountbatten-Windsor, stripped of titles in Oct 2025, left Royal Lodge in Feb 2026 for Sandringham. His daughters, Princess Beatrice and Princess Eugenie, live in Kensington Palace and St James’s Palace apartments; their rents are paid from the privy purse (King Charles III). Prince William and Catherine pay £307,200 for Forest Lodge; Prince Edward and Sophie hold a pepper-corn lease on Bagshot Park.
Financial Overview and Public Funding
The NAO reports 11 working royals receive free housing for duties. Crown Estate profits (£15 billion) go to the Treasury. The household rents 145 staff properties (staff pay 16.7 % of salary), 32 on the open market, and generated £3.6 million rental income in 2024-25. The three cottages were vacant by April 2026. Andrew may receive compensation of over £300,000, subject to repair costs.
Official Statements
Buckingham Palace called the NAO report “in line with the Royal Household’s commitment to transparency.” A Crown Estate spokesperson said the leases were “agreed in line with independent, professional advice and open-market valuations.” Margaret Hodge, committee chair, told BBC Radio 4 she was “very concerned” the audit could not establish the rent amount.
Criticism and Opposition
Norman Baker (Liberal Democrat) called the deal “absolute total contempt for the taxpayer.” Republic called the subletting a “flagrant abuse of public property.” Labour MP Rachael Maskell said the revelations show Andrew “profiteered from his position.” Dr Craig Prescott warned that “perception is key” when public assets are involved.
Conflicting Reports & Gaps
The NAO could not quantify the cottage rent. Analysts estimate up to £30,000 per cottage annually; other sources say the rents only covered maintenance and staff costs. Tenant identities and exact payments remain undisclosed.
Verbatim Quotes
- “It’s shocking that the National Audit Office was not able to establish how much money Andrew Mountbatten-Windsor secured from the properties he let,” — Margaret Hodge, Labour peer
- “It shows an absolute total contempt for the taxpayer, 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,” — Norman Baker, Liberal Democrat
- “The perception is of people living in massive palaces or properties, and the concern is that they’re getting a very good deal or, worse, making money from it,” — Dr Craig Prescott, Royal Holloway
- “is in line with the royal household’s commitment to transparency. We hope that the findings will help correct, clarify or contextualize a number of points regarding royal properties.” — Buckingham Palace spokesperson
What’s Next
The Accounts Committee will hold an inquiry in 2026 to examine property arrangements.
