A public spending watchdog has revealed that the Duke of York, Andrew Mountbatten-Windsor, sub-let three cottages on the Royal Lodge estate in Windsor, pocketing the rental income himself, while paying only a peppercorn rent under his lease agreement with the Crown Estate.
The National Audit Office (NAO) report, published on Wednesday, examined the property arrangements of senior royals and found that Andrew's lease for the 99-acre estate allowed him to rent out three of the eight buildings within the grounds. Sources confirm that he collected the income from these sub-lets, and during the 20 years he occupied Royal Lodge, he paid no formal rent to the Crown Estate beyond a nominal sum.
“The National Audit Office reveals Andrew Mountbatten-Windsor sub-let three Royal Lodge cottages, pocketing rental income, while paying no rent for 20 years. The CPS says investigations into him and Lord Mandelson could take over a year.”
The findings have reignited scrutiny over the former Duke of York's finances, especially after he was stripped of his military titles and royal patronages in 2022 following his association with convicted sex offender Jeffrey Epstein. The NAO report did not disclose the total amount Andrew earned from the sub-lets, but it noted that the lease terms permitted him to retain the rental proceeds.
Separately, the head of the Crown Prosecution Service (CPS), Max Hill, has said that ongoing investigations into both Andrew and former Labour minister Lord Peter Mandelson could take more than a year to complete. Hill told the BBC that the cases are complex and require thorough examination. The CPS is investigating allegations relating to Andrew's dealings with Epstein, while Mandelson is being investigated over potential breaches of lobbying rules.
The Royal Lodge estate, which Andrew moved into in 2004 after extensive renovations funded by the taxpayer, is owned by the Crown Estate. Under a long-standing arrangement, the royal family occupies certain properties under leasehold agreements. The NAO report, which covers the period from 2000 to 2024, found that Andrew's lease allowed him to sub-let properties, but the income was not declared to the Crown Estate.
The revelations have prompted criticism from anti-monarchy groups and transparency campaigners, who argue that the royal family should be subject to greater financial scrutiny. A spokesperson for the Crown Estate said it was reviewing the NAO's findings and would consider any necessary changes to lease arrangements.
Andrew, 66, was photographed looking bruised on a recent outing, but no explanation has been given. The Sun reported that he had a "mystery shiner" on his cheek.
The NAO report also examined the property arrangements of other royals, including King Charles III and the Prince of Wales, but found no similar issues.
What next? The CPS investigation into Andrew and Mandelson is ongoing, with no set timeline. The Crown Estate may also revise its leasing policy for royal residences. Labour MP Margaret Hodge has called for a full parliamentary inquiry into the royal family's property portfolio.
## What This Means For You
For taxpayers: The NAO report confirms that taxpayer-funded renovations at Royal Lodge were not recouped through rent, as Andrew paid no market-rate rent for two decades. This raises questions about value for money.
For transparency campaigners: The findings add weight to demands for the monarchy to be subject to the Freedom of Information Act.
For royal watchers: The CPS investigation into Andrew could lead to criminal charges, but a decision is unlikely before late 2025.
For home renters in Windsor: The sub-letting of Crown Estate cottages may affect local rental markets, though the properties are private.
For anyone following the law: The case highlights that even leaseholders in high-value properties can face scrutiny over sub-letting practices and tax liabilities.