Princess Beatrice and Princess Eugenie have not paid any rent for the palace apartments they have occupied since 2008, according to a National Audit Office (NAO) report released this week. The investigation also highlights similar subsidised arrangements for other senior royals, including Prince and Princess Michael of Kent and Princess Alexandra. The findings are expected to spark fresh parliamentary scrutiny of how public funds support the royal household.

Princesses Beatrice and Eugenie’s £0 rent on St James’s and Kensington Palace

The NAO disclosed that the York sisters’ accommodation costs have been covered entirely by the Privy Purse,the king’s private income from the Duchy of Lancaster, with no taxpayer money directly involved.. Their leases at St James’s Palace (2008‑2018) and Ivy Cottage in Kensington Palace (from 2018) were set at rates based on outdated market valuations, often far below open‑maret levels.

Prince and Princess Michael of Kent’s long‑term Kensington Palace lease

The report reveals that the Kent couple also benefit from a sovereign‑subsidised lease on a lavish Kensington Palace apartment, a deal that dates back to Queen Elizabeth II’s reign.. Critics note that the arrangement persists despite the couple’s limited public duties, raising questions about the fairness of such privileges.

Princess Alexandra’s 2144 lease on a Richmond Park mansion

Princess Alexandra, 89, is reported to have a lease negotiated by a trust that extends until 2144, when she would be 207 years old. the unusually long term underscores the opaque nature of some royal property agreements and fuels calls for greater transparency.

Andrew Mountbatten‑Windsor’s “peppercorn rent” controversy at Royal Lodge

The NAO investigation was triggered by the scandal surrounding Lord Mountbatten‑Windsor’s so‑called peppercorn rent for Royal Lodge, a Grade II‑listed mansion he was forced to vacate after his assciation with Jeffrey Epstein. The report notes he could be entitled to more than £300,000 in compensation from the Crown Estate, though sources say repair costs would likely offset any payout.

Unanswered questions about royal subsidy mechanisms

Who ultimately decides the rent levels for these palace properties, and why are they based on “out‑of‑date open market valuations,” as the NAO puts it? The report does not disclose the methodology used to set the rates, leaving a gap in accountability.

According to former Liberal Democrat minister Norman Baker, the arrangements constitute “an absolute total contempt for the taxpayer,” and he urges MPs to examine whether non‑working royals should continue to receive such subsidies. As the NAO report itself states, it is factual and does not assess value for money, but the revelations are likely to fuel further parliamentary debate.