Former Prince Andrew’s Cottage Subletting Deal Comes to Light

On May 5, 2026, the National Audit Office (NAO) released the first detailed report in twenty years on the financial arrangements of royal properties. The audit – conducted at the request of lawmakers following Prince Andrew’s removal from the royal household – confirmed that Andrew Mountbatten‑Windsor, the former Prince Andrew, sublet three cottages on the Royal Lodge estate while paying only a peppercorn rent for the 30‑room mansion and surrounding grounds.

In 2003, Mountbatten‑Windsor signed a 75‑year lease on the lodge, a gesture that lowered his initial £1 million payment to a nominal fee for the property. The lease also required a £7.5 million sum in 2005 to renovate the estate, further reducing the net cash cost. Under the lease, Mountbatten‑Windsor was authorized to sublet three of the estate’s eight cottages, an arrangement that the NAO report says produced income of an undisclosed amount.

State‑level audit data show that, unlike working royals who receive free accommodation in exchange for official duties, the former prince’s daughters – Princess Beatrice and Princess Eugenie – live in rent‑controlled palace residences managed by the Privy Purse. Their properties in St. James’s Palace and Kensington Palace, respectively, are also paid for by the king’s private funds, a practice that has drawn criticism from those who argue the monarchy benefits from public money without compensating taxpayers.

The audit further outlined that eleven working royals receive housing free of charge in the palaces, including the king, Queen Camilla, Prince William and Catherine, and Prince Edward and Sophie. However, William and Kate also maintain a separate family home near Windsor, for which they pay roughly £307,200 annually. The report indicates that other Crown properties – 145 rented out to staff at about 16.7 % of salary, 32 on the open market and several tailored for former employees – generated £3.6 million in income last year.

These findings come amid growing scrutiny over Andrew Mountbatten‑Windsor’s links to the disgraced financier Jeffrey Epstein. While he denies wrongdoing, the former prince faces police investigations regarding potential misconduct as a trade envoy and possible sexual allegations. Critics argue that the reports expose the monarchy’s dependence on privileged financial arrangements.

Proponents of the royal household defend the transparency of the audit, stating that it aligns with the monarchy’s commitment to openness. Nonetheless, the disclosure of a peppercorn rent‑based subletting arrangement fuels debate over the fairness of the Crown’s property management and its implications for public policy.