Princess Beatrice and Princess Eugenie have been living rent‑free in royal apartments for almost two decades, a fact highlighted in a new National Audit Office (NAO) report. The investigation shows the Duchy of Lancaster has been footing the bill despite the sisters’ lucrative careers and wealthy spouss, prompting criticism from politicians and commentators alike.

NAO Report Details £0 Rent for Kensington and St James’s Palaces

The NAO document, released this week, confirms that the two princesses have not paid any rent for their residences at Kensington Palace and St James’s Palace since the early 2000s. Funding for the apartments comes from the Duchy of Lancaster, the private estate that supports the monarch’s official duties, according to the report. This arrangement persists even though both women hold well‑paid jobs and own multi‑million‑pound homes.

Tina Brown Calls the York Sisters “Rot at the Heart of the Royal System”

Journalist Tina Brown, a confidante of Princess Diana,wrote in her Substack column “Fresh Hell” that the House of York now symbolizes “rot at the heart of the whole royal system .” She argued that the monarchy’s aura grants members “absolute impunity,” and singled out Beatrice and Eugenie as emblematic of systemic decay. Brown’s commentary aligns with royal author Andrew Lownie’s claim that the princesses rejected Prince William’s request for an audit of their business activities .

Other Extended Family Members Also Benefit from Duchy Subsidies

The NAO report does not limit its findings to the York sisters. It notes that Prince Andrew, despite losing his HRH style, was allowed to let three properties on his leased Windsor estate to staff and may receive over £300,000 in compensation from the Crown Estate. Additionally, Prince and Princess Michael of Kent enjoy a long‑term lease on a Kensington Palace apartment, and Princess Alexandra, 89, rents a Richmond Park mansion under a lease extending to 2144.

Political Outcry: Norman Baker Calls the Situation “Outrageous”

Former Liberal Democrat minister Norman Baker described the subsidies as “an absolute total contempt for the taxpayer,” insisting that funds should flow to the Crown Estate rather than private pockets. He echoed long‑standing criticism that non‑working royals should not be financially supported by the Duchy, especcially in a climate of public austerity.

Unanswered Questions About Future Audits and Royal Reform

While the NAO report is factual, it does not assess value for money, leaving open whether the rent‑free arrangements violate any existing statutes. It is also unclear how quickly Parliament will act on the findings, as MPs are expected to scrutinise the report in the coming months. Finally, the report does not disclose whether King Charles plans to amend the Duchy’s funding rules in line with his public commitment to a “streamlined, cost‑conscious monarchy .”