First report in two decades
The National Audit Office (NAO) has carried out a royal residence review and released a report providing new details on royal housing arrangements, including Prince Andrew’s lease of Royal Lodge and accommodation provided to members of the Royal Family.
The report is the first comprehensive review of royal residences in 20 years and examines properties owned by the Crown Estate and the Royal Household.
According to the report, Prince Andrew received rental income from three cottages on the Royal Lodge estate that were sub-let under the terms of his lease.
Details of Royal Lodge lease
The report notes that Andrew paid £7.5 million for repairs when he took on the Royal Lodge lease, meaning he was not required to pay monthly rent.
Although he moved out of Royal Lodge earlier this year and relocated to Sandringham, he retains the lease until October 2026.
The report does not specify how much rental income was generated from the cottages. Palace sources said the properties were rented to staff or former staff and that the income covered running costs.
There is no suggestion of wrongdoing by Andrew in the report.
Accommodation for royal family members
The review also outlines accommodation arrangements for members of the Royal Family.
Princess Eugenie has a residence in Kensington Palace, while Princess Beatrice has accommodation in St James’s Palace.
The report states that rent for these properties is paid through the Privy Purse, which is funded by the monarch’s private income, not the public.
A Palace source said that the rent paid on these properties for non-working royals would cover any costs associated with the properties, so there would be no extra cost to the Sovereign Grant, which pays for the official duties of the monarchy.
The Sovereign Grant is public funding used to support the official duties of the monarchy and maintain the occupied royal estate.
Working royals and palace residences
The report confirms that working members of the Royal Family receive accommodation as part of their official duties.
These include the King and Queen, the Princess Royal, the Duke and Duchess of Edinburgh, the Duke and Duchess of Gloucester, the Duke of Kent, Princess Alexandra and the Prince and Princess of Wales. The report states that non-working royals occupying Royal Household properties pay rent on those residences.
The NAO also found that a number of other royal office holders, including military knights, are provided accommodation within occupied royal palaces.
Further scrutiny expected
The report does not make findings on value for money and draws no conclusions regarding the arrangements.
However, it is expected to inform a future inquiry by MPs on the Public Accounts Committee.
A Palace spokesman said it was “grateful” for the report which was “in line with the Royal Household’s commitment to transparency”.
“We hope that the findings will help correct, clarify or contextualise a number of points regarding royal properties,” the spokesman added.
“As the report notes, arrangements for properties managed by the Royal Household vary based on a number of factors to ensure residences are filled appropriately, depending on their location, tenants and purpose,” he said.
A spokesperson for The Crown Estate, said: “The Crown Estate welcomes the National Audit Office’s review which confirms its leases with members of the royal family were agreed in line with independent, professional advice and open market valuations.”
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