King Charles may be allocating over £278,000 annually to cover the housing expenses of Princess Beatrice and Princess Eugenie at royal residences, as estimated by a property valuer. The daughters of Andrew Mountbatten Windsor, who are non-working members of the Royal Family, reside in royal palaces rent-free, according to a recent audit report. Princess Beatrice resides at St James’s Palace, while Princess Eugenie lives in Ivy Cottage at Kensington Palace, with the cost of both residences covered by the Privy Purse, the King’s private income.
The audit reveals that rents for Royal Household properties are typically set around 60% of market rates due to security clearance requirements for tenants. However, specific amounts for the princesses’ homes were not disclosed in the report. Additionally, the National Audit Office found that some discounted rents for royal properties were based on outdated market valuations in the past.
The audit also highlighted Prince Edward and Duchess Sophie potentially earning an extra £130,000 per year from subletting the old stables near their mansion in Surrey. The Duke and Duchess of Edinburgh pocket this income after paying a nominal ‘peppercorn rent’.
Furthermore, the audit detailed the costs associated with preparing Forest Lodge, the new residence of the Prince and Princess of Wales, which exceeded the average house price in England by over £100,000. The Crown Estate funded repairs and improvements to the property, including works on the main house, stable cottages, and a barn.
The report also exposed Andrew Mountbatten-Windsor’s subletting arrangements at his former Royal Lodge residence, where he generated rental income from cottages on the estate. Andrew did not pay monthly rent for Royal Lodge but contributed £7.5 million towards repairs when he leased the property.
In response to the findings, a Buckingham Palace spokesperson emphasized the Royal Household’s commitment to transparency. The report also highlighted Princess Eugenie’s accommodation at Kensington Palace, funded by the privy purse, with renovations reportedly covered by Eugenie herself.
Overall, the audit shed light on the accommodation arrangements of various royals, with public funding maintaining several palaces housing members of the Royal Family. The Crown Estate stated that their leases with royal family members were agreed upon following independent advice and market valuations.
Thatched House Lodge, currently occupied by Princess Alexandra, a cousin of the late Queen, is mentioned in the report. Alexandra has been renting the Grade II listed home for a nominal fee, significantly lower than average rental prices in the area. The rental terms for the property have evolved over the years, with adjustments made to the lease premium and annual rent.