Audit Report Reveals Prince Andrew Earned Income From Royal Estate Cottages as Scrutiny of Royal Housing Arrangements Grows

By Zoey

Fresh scrutiny has been directed at the finances and housing arrangements of Britain’s royal family following the publication of a report by the United Kingdom’s public spending watchdog, which revealed that Prince Andrew generated income by subletting cottages located on the estate where he lived rent-free for more than two decades.

The report, released on Friday by the National Audit Office, detailed how Andrew Mountbatten-Windsor received rental income from three cottages situated within the grounds of Royal Lodge, his longtime residence near Windsor Castle. The findings have reignited debate over the use of royal properties and the financial benefits enjoyed by members of the royal family.

According to the report, a lease agreement signed in 2003 granted Mountbatten-Windsor occupancy of Royal Lodge, a sprawling estate that includes a 30-room mansion and eight cottages. Under the arrangement, he paid only a symbolic “peppercorn rent,” a nominal fee commonly used in long-term property agreements. The lease also permitted him to sublet three of the cottages, allowing him to generate private income from properties located on a royal estate.

However, the report did not disclose how much revenue was earned from the rentals, prompting criticism from lawmakers and campaigners who argue that greater transparency is needed regarding royal finances.

Margaret Hodge, a member of the House of Lords and former chair of Parliament’s Public Accounts Committee, expressed concern over the absence of detailed financial information. She said it was troubling that investigators were unable to establish the amount of money earned through the subletting arrangements, adding that taxpayers deserve a clearer picture of how royal properties are used and whether public assets are being leveraged for private gain.

The review was commissioned following growing public interest in Mountbatten-Windsor’s financial affairs after he was stripped of his military affiliations and royal patronages. His departure from Royal Lodge came after years of controversy surrounding his association with the late financier and convicted sex offender Jeffrey Epstein. Earlier this year, he relocated to accommodation on the Sandringham Estate, a royal property in eastern England owned by King Charles III.

The report also shed light on the broader housing arrangements within the royal family. It found that 11 working members of the monarchy are provided with accommodation within royal palaces as part of their official roles and responsibilities. These include King Charles III and Queen Camilla, the Prince and Princess of Wales, William and Catherine, as well as the King’s youngest brother, Prince Edward, and his wife Sophie.

While many senior royals receive housing linked to their official duties, the report noted that William and Catherine additionally maintain a family residence near Windsor for which they pay annual rent of £307,200, equivalent to approximately $413,000.

Particular attention was also drawn to the housing arrangements of Princess Beatrice and Princess Eugenie, daughters of Prince Andrew. Although neither is classified as a working royal and both maintain careers outside royal duties, they reside in palace properties where rents are set below full market value. Beatrice lives in an apartment within St. James’s Palace, while Eugenie occupies a cottage at Kensington Palace.

The report stated that rents for the two properties have recently been set at between 50 and 68 percent of their estimated open-market value. These costs are covered through the Privy Purse, the monarch’s private income fund.

Buckingham Palace welcomed the publication of the report, saying it reflected the royal household’s commitment to transparency. Palace officials expressed hope that the findings would help clarify longstanding questions and provide additional context regarding the management and allocation of royal residences.

Critics of the monarchy, however, argued that the report highlighted a wider issue concerning accountability and public confidence in royal finances. Former Liberal Democrat lawmaker Norman Baker, a longtime campaigner for greater scrutiny of the monarchy’s financial arrangements, said the revelations demonstrated what he described as a disregard for taxpayers.

He argued that allowing Prince Andrew to occupy a substantial estate at a nominal rent while also benefiting financially from subletting cottages raised serious questions about fairness and oversight.

The report emerges amid continuing attention on Mountbatten-Windsor’s connections to Epstein. Earlier this year, his name appeared in a large collection of documents released by U.S. authorities as part of broader investigations into Epstein’s network of wealthy and influential associates. The documents renewed public interest in the former prince’s relationships and activities during the period when he served as the United Kingdom’s trade envoy.

British authorities are currently examining allegations that confidential trade information may have been shared with Epstein during that time. Investigators have indicated that inquiries could expand if additional evidence emerges, and appeals have been made for potential witnesses to come forward. Mountbatten-Windsor has consistently denied any wrongdoing and has not been charged with any offence.

In February, the 66-year-old was questioned by police regarding allegations of misconduct in public office. Following questioning, no charges were brought against him, and he has continued to deny all allegations made against him.

Since relocating to the Sandringham Estate, Mountbatten-Windsor has largely remained out of public view. He was photographed this week traveling in a vehicle with a noticeable bruise on his face. British media reports suggested the mark was linked to a minor medical condition, though no official explanation has been provided.

The National Audit Office report is likely to intensify ongoing debate about the funding, management and transparency of royal assets at a time when public scrutiny of the monarchy’s finances remains high. Lawmakers and campaigners are expected to continue pressing for greater disclosure about how royal properties are used and whether arrangements involving members of the royal family provide appropriate value and accountability.