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Former Prince Andrew Earned Rental Income from Royal Lodge Cottages, Watchdog Finds
A new report from the UK's National Audit Office (NAO) has revealed that Andrew Mountbatten-Windsor, formerly known as Prince Andrew, received undisclosed rental income from subletting three cottages on the grounds of Royal Lodge, his former royal residence in Windsor Great Park. The findings, published on June 5, 2026, mark the first comprehensive review of royal housing arrangements in two decades.
Andrew leased the 30-room mansion from the Crown Estate under a 75-year lease signed in 2003, paying £1 million upfront plus £7.5 million for renovations. In return, he paid only a symbolic 'peppercorn rent' — effectively no monthly rent. However, the NAO report confirms that he sublet three cottages on the estate to tenants, with all income going directly to him rather than to the Crown Estate. The watchdog could not determine the exact amount of rental income or the identities of the tenants, who vacated the properties by April 2025.
Background: Royal Lodge and the NAO Investigation
Royal Lodge, a Grade II listed building dating back to the 17th century, has been the Windsor residence of senior royals since the 1930s, most famously serving as the home of Queen Elizabeth the Queen Mother from 1952 until her death in 2002. Andrew moved into the property with his family in 2004. The NAO investigation examined a total of twelve properties used by Andrew, his family, and staff.
The report emphasizes that there are no indications of unlawful conduct by Andrew regarding the subletting. However, the arrangement has drawn sharp criticism from MPs and transparency advocates who question the propriety of a non-working royal profiting from a publicly-owned estate. The British royal family housing expenses have long been a subject of public debate.
Key Findings of the NAO Report
Subletting Arrangements
According to sources around Buckingham Palace, the three cottages were rented to employees or former employees of Andrew, and the income was intended to cover management costs. Nevertheless, the NAO confirmed that the rental proceeds went to Andrew personally, not to the Crown Estate. The report states: 'The income from subletting these properties was received by Andrew Mountbatten-Windsor, and the NAO was unable to ascertain the precise amounts involved.'
Financial Details of Andrew's Lease
Andrew's lease for Royal Lodge runs until October 2026, even though he moved out earlier this year. He relocated to Wood Farm on the Sandringham Estate in Norfolk following pressure from King Charles III after the release of documents linking him to convicted sex offender Jeffrey Epstein. The NAO noted that Andrew's upfront payment for renovations exempted him from monthly rent obligations.
Housing for Royal Family Members
The NAO report also shed light on housing arrangements for other royals. King Charles III pays the rent for apartments used by Andrew's daughters, Princess Beatrice and Princess Eugenie, at St James's Palace and Kensington Palace, respectively. Neither princess is a working member of the royal family. The rent is covered from the King's private income, described by Buckingham Palace as ensuring no additional burden on public funds. The exact amounts remain undisclosed. Prince William and Kate, the Prince and Princess of Wales, pay £307,200 annually for Forest Lodge on the Windsor estate, while the Duke and Duchess of Edinburgh are permitted to sublet properties at Bagshot Park.
Impact and Political Reactions
The NAO findings have reignited debates about transparency and fairness in royal finances. Labour MP and chair of the Public Accounts Committee, Sir Geoffrey Clifton-Brown, called the arrangements 'shocking' and 'outrageous,' stating: 'It is unacceptable that a former prince could generate private income from a publicly-owned estate while paying no rent himself.' The report will be discussed by the parliamentary committee overseeing government expenditures.
Buckingham Palace has stated that the investigation aligns with the monarchy's desire for greater openness regarding the use of royal residences. The UK royal family financial transparency movement has gained momentum in recent years, with increasing calls for audited disclosures.
Andrew Mountbatten-Windsor remains under police investigation for possible misconduct related to his association with Jeffrey Epstein. He was arrested earlier this year on allegations of sharing government reports with the disgraced financier. He lost his royal titles and HRH style last year following the Epstein scandal fallout.
Frequently Asked Questions
How much rental income did Prince Andrew receive from the Royal Lodge cottages?
The NAO report states it could not determine the exact amount of rental income Andrew received from subletting the three cottages. The tenants vacated by April 2025, and no financial records were made available to the auditors.
Did Prince Andrew break any laws by subletting the cottages?
The NAO report explicitly states there are no indications of unlawful conduct by Andrew. His lease agreement reportedly permitted subletting of the three properties on the Royal Lodge estate.
Why did Prince Andrew leave Royal Lodge?
Andrew moved out of Royal Lodge earlier in 2026 to Wood Farm on the Sandringham Estate after King Charles III reportedly pressured him to vacate the property. The move followed the release of court documents linking Andrew to Jeffrey Epstein and increased police scrutiny.
What is a 'peppercorn rent'?
A peppercorn rent is a nominal or symbolic rent, often used in long leases to acknowledge the landlord's title while requiring minimal payment. In Andrew's case, his £7.5 million renovation investment was considered sufficient consideration, so he paid no ongoing monthly rent.
Will the NAO report lead to changes in royal housing policies?
The report will be reviewed by the parliamentary Public Accounts Committee. Buckingham Palace has expressed support for greater transparency, but no specific policy changes have been announced yet. The Crown Estate royal property management practices may face further scrutiny.
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