Andrew Mountbatten-Windsor generated private income by subletting three cottages on his Windsor Royal Lodge estate while paying a “peppercorn rent” to the Crown Estate, a National Audit Office (NAO) report has revealed.
The NAO review, published on Friday, examined the property arrangements of senior royals. It found that the Duke of York – who no longer carries out public duties – had leased the 30-room Royal Lodge on a 75-year agreement with a rent described as “peppercorn”, meaning nominal. He then sublet three cottages on the estate, keeping the income for himself. The exact amount he earned remains unclear; the NAO said it was not able to establish how much money the former prince made from the lettings.
“Andrew Mountbatten-Windsor sublet three cottages at Royal Lodge while paying a peppercorn rent, an NAO report reveals. King Charles pays below-market rent for his nieces. Margaret Hodge says it's shocking the watchdog couldn't establish Andrew's income.”
Margaret Hodge, former chair of the public accounts committee, told BBC Radio 4’s Today programme she was “shocked” and “very concerned” that the watchdog had not determined Andrew’s property income. “It is shocking that the National Audit Office cannot find out how much money Andrew has made from subletting,” she said. The report also disclosed that King Charles III pays an “adjusted” rent – below open market value – from his private Duchy of Lancaster income for his non-working nieces, Princesses Beatrice and Eugenie, to live in royal palaces.
The royal finances have come under renewed scrutiny amid the cost-of-living crisis. The NAO’s findings lay bare the preferential property arrangements afforded to some members of the Royal Family, contrasting with the housing pressures faced by many ordinary Britons. Andrew’s living arrangements have been controversial since he stepped back from royal duties in 2019 following his disgraced association with convicted sex offender Jeffrey Epstein.
Royal Lodge, a Grade II-listed mansion in Windsor Great Park, has been Andrew’s home since 2004. He also previously lived at Sunninghill Park, a property gifted to him and his ex-wife Sarah Ferguson. The 30-bedroom Sunninghill was sold in 2023 for a reported £15 million. The NAO report does not cover the sale.
There is no specific regional dimension beyond the location of Royal Lodge in Berkshire, England. However, the report has implications for the monarchy’s reputation across the UK. In Scotland, where the Royal Family owns Balmoral, similar scrutiny of property terms could arise, though no such details were in the report.
The NAO said it had limited powers to investigate the private income of royals. Gareth Davies, the head of the NAO, has been called to give evidence to the public accounts committee. Hodge urged the committee to demand more transparency. “Taxpayers deserve to know how much money is being made from these arrangements,” she said.
Separately, Andrew was photographed this week with a large bruise across his face. The cause has not been confirmed, but sources told the Independent it was the result of a “non-serious medical condition”. The incident has drawn further attention to the former prince, though it is unrelated to the financial revelations.
What This Means For You The report highlights the discrepancy between royal property deals and the housing market faced by ordinary UK citizens. Homeowners and renters may question why a non-working royal pays a peppercorn rent while many struggle with rising rents and mortgages. The NAO’s inability to disclose Andrew’s subletting income raises concerns about accountability of public funds. For taxpayers, the report implies that public money – via the Crown Estate – is effectively subsidising private income for a member of the Royal Family who no longer performs official duties. King Charles’s payment for his nieces’ accommodation also uses his private income, but the below-market rate may be seen as a benefit not available to others. The parliamentary committee is likely to press for tighter rules on royal property arrangements.