Andrew Mountbatten-Windsor sublet Crown Estate cottages for private income while paying symbolic rent, NAO report reveals

A report from the UK's National Audit Office (NAO), published on Friday, has revealed that Andrew Mountbatten-Windsor, the former Duke of York, sublet three cottages on the Royal Lodge estate in Windsor and kept the rental income for himself. The disclosure has intensified calls for a full parliamentary inquiry into royal finances.

The Royal Lodge arrangement

Under a 75-year lease signed in 2003, Mountbatten-Windsor paid an upfront premium of £1 million and committed to £7.5 million in renovations. In return, he paid a "peppercorn rent" — effectively zero — for the 30-room mansion and eight surrounding cottages on the 40-hectare estate. The lease permitted the subletting of up to three cottages, a right he exercised until April 2026. The NAO stated it could not determine how much income he received from these sublets.

We do not know what rent was charged.

The Crown Estate, which manages the property portfolio on behalf of the monarchy and directs its profits to the Treasury, said the lease terms were "in line with independent, professional advice and open market valuations." The NAO offered no opinion on whether the arrangements represented good value for money for taxpayers.

Daughters' palace apartments

Beyond the Royal Lodge, the report detailed that Mountbatten-Windsor and his family had access to 12 properties in total. His daughters, Princess Beatrice and Princess Eugenie, who do not perform official royal duties, continue to live in palace apartments — Beatrice at Kensington Palace and Eugenie at St James's Palace — with their rent met privately by King Charles. The rent is adjusted, or discounted, because tenants must undergo security vetting.

We hope that the findings will help correct, clarify or contextualise a number of points regarding royal properties.

Political and public reaction

The revelations have drawn sharp criticism from anti-monarchy campaigners and MPs. Margaret Hodge, former chair of the Public Accounts Committee, told BBC Radio 4 she was "very concerned" that the NAO could not ascertain the rental income Mountbatten-Windsor received. Graham Smith, chief executive of Republic, called the subletting a "flagrant abuse of public property" and urged MPs to push for "radical reform, including removing all royals but the monarch from publicly owned accommodation."

The crown estate and royal palace property portfolio is state property. It should all be used for the benefit of the public, not the private enrichment of the royals.

Former Liberal Democrat minister Norman Baker called for an investigation into "all royal finances, not just Andrew's." The NAO report was prepared as part of a Public Accounts Committee inquiry announced in December, following public outcry over Mountbatten-Windsor's ties to the late sex offender Jeffrey Epstein. He was stripped of all royal titles in 2025 and has since been relocated by King Charles to Marsh Farm in Norfolk.

Wider implications

The report marks the most detailed review of royal property arrangements in 20 years. While no legal violations were identified, the findings have placed the monarchy under renewed scrutiny over its use of publicly owned assets. The Crown Estate portfolio is valued at approximately £15 billion, and critics argue that the arrangements highlight a lack of transparency in how royal residences are allocated and financed.