A National Audit Office report has sparked outrage after revealing that Andrew Mountbatten-Windsor profited from subletting cottages on his former Windsor estate. The findings have led to calls from campaigners for the former royal to return these funds to the Crown Estate.

The three sublet cottages at Royal Lodge

According to the National Audit Office (NAO),Andrew Mountbatten-Windsor maintained a financial arrangement where he lived rent-free at Royal Lodge while simultaneously subletting three cottages on the estate to his own staff. The report indicattes that Mountbatten-Windsor was permitted to keep the profits from these rentals, a deal with the Crown Estate that remained in place until his eviction earlier this year.

While sources close to Andrew Mountbatten-Windsor claim that the rental income was used exclusively for the maintenance and running costs of the properties, the National Audit Office noted that these financial details were never disclosed to them. Because the transactions were treated as private, there is currently no independent way to verify if the money was used for upkeep or personal gain.

Rent-free residences for Princesses Beatrice and Eugenie

The controversy extends beyond the former Duke of York, as the National Audit Office report reveals that Princesses Beatrice and Eugenie have not personally paid rent for nearly two decades. Despite the fact that neither princess performs official royal duties, they have resided in exclusive palace properties through secret subsidies provided by their grandmother, Queen Elizabeth, and their uncle, King Charles.

This pattern of sovereign-funded housing is a recurirng theme in the report, suggesting a systemic culture of residential subsidies for non-working members of the royal family. Such arrangements contrast sharply with the public-facing image of a streamlined, modern monarchy.

The £69 weekly fee for Apartment 10

One of the most striking examples of subsidized living involves Prince and Princess Michael of Kent and their residence in Kensington Palace.. As the report says, the couple was granted Apartment 10 as a wedding present in 1978 and paid only a nominal fee of £69 per week for utilities and maintenance for several decades.

Although it was later announced that the couple would pay the market value of £120,000 per year, the National Audit Office found that Queen Elizabeth personally covered this cost until 2010. Furthermore, King Charles has privately continued to uphold this financial commitment to the couple, who are now in their 80s and experiencing poor health.

Princess Alexandra's lease extending to 2144

The report also highlights the extreme longevity of certain royal property deals, specifically noting that Princess Alexandra, 89, rents a mansion in Richmond Park. This lease, negotiated by a trust with the Crown Estate, is set to run until the year 2144, ensuring the property remaiins in her sphere of influence for over a century.

This long-term arrangement echoes a broader trend of royal family members securing favorable, multi-generational property terms that are unavailable to the general public. It reinforces the argument made by Baroness Margaret Hodge, former chairwoman of the Public Accounts Committee, that the Crown Estate belongs to taxpayers and must be managed in the public interest.

The £13.4 billion Crown Estate transparency gap

The Crown Estate manages a massive portfolio of nearly 2,500 properties valued at £13.4 billion and is officially required to achieve the best possible price when leasing or selling assets. However, the National Audit Office's findings suggest a significant gap between this mandate and the actual treatment of royal family members.

A critical question remains: exactly how much money did Andrew Mountbatten-Windsor earn from the three sublet cottages? Because the Crown Estate and the Royal Household treated these as private transactions, the public is left without a concrete figure, fueling demands from campaigners for full disclosure and repayment.