Princesses Beatrice and Eugenie’s rent deals will be reviewed by the royal household.
It was revealed today in a bombshell National Audit Office (NAO) report the pair are living in royal accommodation rent-free as the King’s private funds cover their already below-market rate accommodation costs.
The report detailed the agreements, which involve residences inside St James’s Palace and Kensington Palace, had been in place for more than 15 years.
Neither princess undertakes official royal duties, yet both hold lease agreements described as licences that are renewed annually.
Royal sources have now confirmed all such financial matters remain subject to ongoing assessment, according to The Times.
The Public Accounts Committee (PAC) is preparing to launch a Commons inquiry at the end of June, following publication of the annual Crown Estate accounts.
MPs could scrutinise how royal estates are managed and whether taxpayers receive adequate value from these arrangements.
A member of the committee said they may even summon members of the Royal Family to Parliament to provide testimony to give evidence to MPs about their use of royal properties.
Princesses Beatrice and Eugenie’s rent deals will be reviewed by the royal household
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PA
The NAO’s report had been authorised as Buckingham Palace wishes to demonstrate greater transparency as public attention intensifies on how royal properties are allocated.
It followed public outcry surrounding Andrew Mountbatten-Windsor’s lease terms at Royal Lodge, his former Windsor residence, where he paid a peppercorn rent for decades.
The report detailed the former Duke of York was able to sublet three of eight cottages on the property’s grounds.
He continued receiving private rental income from these arrangements until April this year, months after losing his titles and being effectively removed from the estate amid his links to convicted paedophile Jeffrey Epstein.
The report detailed that Andrew Mountbatten-Windsor was able to sublet three of eight cottages on the property’s grounds
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GETTYPalace sources maintain these cottages were let to staff members or their relatives at discounted rates intended to offset maintenance expenses rather than generate profit.
However, the precise sums Mr Mountbatten-Windsor collected remain undisclosed, as the NAO did not request this information from him.
Baroness Hodge, who chaired the PAC from 2010 to 2015, expressed dismay at the watchdog’s failure to determine Mr Mountbatten-Windsor’s subletting income.
Speaking to the BBC, the Labour peer said: “It’s shocking that the National Audit Office was not able to establish how much money Andrew Mountbatten-Windsor secured from the properties he let.”
She added: “We all want a Royal family to be continued, to be respected, valued and treasured. I want a Royal family, but in a modern era that does require proper transparency and accountability.”
The report also detailed both Beatrice and Eugenie were paying around 60 per cent of the open market value for their properties.
For Princess Eugenie, rent was set at 50 per cent of 2018 market value in 2020 and 2021, rising to 55 per cent in 2022, 60 per cent in 2023, 63 per cent in 2024, and reaching 64 per cent by 2026.
For Princess Beatrice, rent was paid at 60 per cent of 2020 market value in both 2020 and 2021, before increasing to 68 per cent by 2026 following later valuation adjustments.
Following the NAO’s report, a spokeswoman for the Crown Estate told GB News: “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.
“We look forward to discussing the report further with the Public Accounts Committee in due course.”