National Audit Office Report Highlights Royal Property Leases and Subletting

The NAO’s first detailed review of royal residences in 20 years confirms that Andrew Mountbatten-Windsor, former Duke of York, holds a 75-year lease on Royal Lodge, paid £1 million upfront and £7.5 million for renovations, and now pays a “peppercorn” rent. The lease allows sub-letting three of eight cottages; the watchdog could not verify the rent, though experts estimate up to £180,000 annually. King Charles III funds adjusted rents for his nieces, Princess Beatrice and Princess Eugenie, set at roughly 60 % of market value and drawn from the Privy Purse. Prince William’s Forest Lodge lease, at £307,200 plus £19,800 for staff accommodation, includes a clause banning sub-letting; the Crown Estate spent about £400,000 on repairs before the Waleses moved in.

Prince William ‘to crack down on royal property rules when he becomes king’ after Andrew cashed in with rent dealsAndrew Mountbatten-Windsor sublet Royal Lodge cottages to boost private income – despite paying peppercorn rentPrince William 'will tighten rules around royal properties when he is King'ReutersTown & Country MagazineNine.com.auBBC NewsThe Guardian

The disclosures have sharpened public debate over royal financial transparency, with critics arguing that subsidised housing for non-working royals erodes taxpayer confidence, while supporters point to historic lease practices and independent Crown Estate valuations.

BBC News

Buckingham Palace thanked the NAO, calling the report “in line with the Royal Household’s commitment to transparency.” The Crown Estate said its leases “were agreed in line with independent, professional advice and open-market valuations.” NAO director Lee Summerfield said the audit “sets out the processes and the arrangements” without judging value for money.

The Guardian

Former Public Accounts Committee chair Margaret Hodge said it was “shocking that the National Audit Office was not able to establish how much money Andrew Mountbatten-Windsor secured from the properties he let.” Former minister Norman Baker called the arrangements “outrageous” and warned the public was “being taken for a ride.” Labour MP Rachael Maskell labelled the situation “profiteering at the expense of others.”

BBC News

The NAO did not disclose the exact rent from the three cottages nor the precise amounts paid for the princesses’ apartments. It also omitted properties owned by the Duchies of Lancaster and Cornwall, leaving an incomplete picture of total royal housing costs.

Reuters

• “In the case of Royal Lodge, three cottages on the estate were sublet with income generated payable to Andrew Mountbatten-Windsor,” — National Audit Office report

New York Times

• “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, former Public Accounts Committee chair

The Guardian

• “outrageous to subsidise luxury accommodation” — Norman Baker, former Home Office minister

BBC News

• “Our role is to set out the facts - and that's why this is an investigation that sets out the processes and the arrangements both from the Crown Estate and the Royal Household,” — Lee Summerfield, NAO director

BBC News

The NAO findings will feed a forthcoming Public Accounts Committee inquiry. Sources say Prince William is weighing reforms that would bar sub-letting and end rent-free arrangements for non-working royals once he becomes king.

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