Princess Beatrice and Princess Eugenie have occupied apartments at Kensington Palace and St James's Palace without paying rent for almost 20 years, a subsidy funded by Queen Elizabeth and now King Charles, according to a new National Audit Office (NAO) report. the revelation has intensified criticism of the monarchy’s financial opacity, especially as the sisters pursue commercial ventures abroad.

NAO Finds Nearly Two Decades of Rent‑Free Housing for the Princesses

The NAO disclosed that the two sisters have not been charged a single penny for their exclusive apartments since the late 1990s, despite owning multimillion‑pound homes and holding well‑paid jobs. The report notes that the arrangement is part of a broader pattern of sovereign‑subsidised accommodation for non‑working royals, including Prince Andrew and the late Queen’s cousins.

Journalist Tina Brown Labels the Situation a "Rot at the Heart" of the Monarchy

Commentator Tina Brown, a friend of Princess Diana, argued that the sisters’ rent‑free status and their recent roles as self‑styled cultural ambassadors in the Middle East exemplify a systemic culture of “greedy” graft within the House of York. Brown cited their mother Sarah Ferguson’s controversial past and claimed the sisters rejected Prince William’s request for an audit of their business dealings, raising concerns about conflicts of interest.

Former Minister Norman Baker Calls the Subsidy "Outrageous"

Norman Baker, a former Liberal Democrat minister and long‑time royal‑finance critic, described the arrangement as “absolute total contempt for the taxpayer.” He argued that non‑working royals should not be funded by the Duchy of Lancaster and that any such money ought to flow directly to the Crown Estate.

Parliamentary Scrutiny Looms as King Charles Pushes a "Cleaned‑Up" Image

King Charles has pledged to modernise the institution, and Prince William is reportedly keen to tighten standards for extended family members. Yet the NAO report, while factual, does not constitute a value‑for‑money audit, leaving MPs to decide whether the opaque leases merit further investigation.

Unanswered Questions: Who Decides Which Royals Receive Public Funding?

The report highlights a lack of independent oversight for the broader royal finances,prompting questions about the criteria used to grant housing subsidies.. It also remains unclear whether the sisters’ overseas business activities are subject to any Crown Estate scrutiny.