Watchdog finds former Prince Andrew earned rent from Royal Lodge cottages

A British watchdog has put a fresh financial lens on Andrew Mountbatten-Windsor’s years at Royal Lodge, finding that he earned rent by subletting three cottages on the Windsor estate while living in a 30-room mansion under a peppercorn lease. The arrangement, which allowed him to occupy the property rent-free aside from a nominal charge, has renewed attention on how publicly connected royal assets can generate private benefit.

The National Audit Office said the lease signed in 2003 covered Royal Lodge and eight cottages, with three of the cottages allowed to be sublet. Those three units were vacant since April 2026, but the report did not disclose how much income Andrew Mountbatten-Windsor received from them. That gap is likely to sharpen criticism over transparency, especially because the same report said he requested early surrender of the Royal Lodge lease on 30 October 2025 and could be entitled to compensation of £301,967.66, depending on notice and dilapidation costs.

The watchdog’s findings go beyond one household. In 2024-25, the Royal Household generated £3.6 million in rental income from non-official use of residential properties, and its policy for non-working royals is to charge an adjusted rent typically equal to 60% of open market value. The NAO also said seven members of the royal family occupy five properties leased from the Crown Estate, while eleven working royals are provided seven residences at no cost in exchange for official duties.

The Crown Estate, which manages about a £15 billion property portfolio and returns net profit to HM Treasury, has long sat at the center of debate over how royal residences are financed and controlled. The NAO said the Royal Lodge lease, along with leases at Bagshot Park and Thatched House Lodge, includes subletting provisions. It also said this was the watchdog’s first report on royal residences in about 20 years, underscoring how rarely the public has been given a full accounting of these arrangements.

The scrutiny extends to the wider family. Princess Beatrice and Princess Eugenie live in rent-controlled palace properties paid for by King Charles III, adding to the picture of a system that blends private advantage, public subsidy and limited disclosure. With the Royal Lodge lease now under formal examination, the larger question is whether such privileges can continue to survive intact under the pressure of modern oversight.