Andrew Mountbatten-Windsor earned up to £2,000 per month by intermittently subletting three cottages at Royal Lodge while paying no rent himself, a parliamentary spending watchdog revealed. The disclosure emerged as MPs criticized the Crown Estate for failing to learn lessons from the historic lease arrangement.
The Public Accounts Committee inquiry into the Crown Estate examined royal leases as part of a wider review into the independent property company, which manages land and seabed portfolios and returns its profits to the Treasury for public spending. Mountbatten-Windsor had taken on a 75-year lease for Royal Lodge in 2003 and paid about £7.5m toward its renovation and other charges, an arrangement that meant he did not have to pay rent.
Subletting Cottages and Sub-Market Rents at Royal Lodge
While occupying the estate in Windsor Great Park, Mountbatten-Windsor intermittently sublet three cottages on the grounds. According to the Public Accounts Committee, one of the cottages was leased at a rate below market value to a resident who had been employed by the royal family for the majority of the 22-year lease term. From late 2021, for a period of less than a year, three cottages were sublet in total, generating a combined income of just over £2,000 a month before maintenance and expenses. The subletting income went directly to Mountbatten-Windsor rather than the Crown Estate, which told MPs it had no oversight over the amounts charged.
The new details regarding the subletting income came to light through a letter sent to the committee by James Chalmers, the Keeper of the Privy Purse and Treasurer to the King. James Chalmers stated that the information was obtained from the Household of Mr Mountbatten-Windsor
and shared in the interests of transparency and openness
.
This is with the agreement of Mr Mountbatten-Windsor,
the letter dated September 7 2026 read, adding: While you kindly suggested at the hearing that you would be willing to treat this information in confidence, I can confirm that Mr Mountbatten-Windsor is content for it to be in the public domain.
Lease Surrender and King Charles Covering Repair Costs
Mountbatten-Windsor officially surrendered his lease on Royal Lodge last month, following his departure from the Windsor property earlier in the year. He has consistently denied any wrongdoing.
The committee report confirmed financial adjustments made upon his exit. An early surrender payment of about £300,000 was due to him, but building dilapidations resulted in a repair bill of £1.8m. After deducting the £302,000 compensation from the repair bill, the Crown Estate was owed £1.5m, which King Charles paid privately on his brother’s behalf.
Committee Recommendations on Future Leases
The cross-party committee concluded that the Crown Estate did not identify specific lessons from the Royal Lodge lease arrangement
and remained reluctant to discuss specifics on how it is applying lessons learned from this process or discuss what they will do differently in the future, due to the Royal Lodge lease being a product of its time
.
MPs recommended that future Crown Estate leases adopt standard commercial practices regarding property use. The report stated:
There should be a standard provision in leases that prohibits sub-letting, unless the landlord’s prior permission is obtained. That permission should not be unreasonably withheld, and we would expect the Crown Estate to obtain relevant financial details.
Public Accounts Committee
The watchdog’s report also raised concerns regarding the rent levels charged to non-working royals accommodated across residential properties managed by the Royal Household. Those individuals included Princess Beatrice, Princess Eugenie, and Prince and Princess Michael of Kent. Documentation from the National Audit Office previously indicated that Princess Beatrice and Princess Eugenie personally contribute nothing toward their housing at Kensington Palace and St James’s Palace respectively; instead, the King covers their rent payments to the Royal Household using his own private funds.
A spokesperson for the Crown Estate responded: The Public Accounts Committee report is an important part of our accountability to Parliament. We are considering its findings and recommendations and will respond to the Committee in due course.
A Buckingham Palace spokesperson added: We are grateful to the Public Accounts Committee and its members for their work on this inquiry. We acknowledge the Committee’s recommendation and will carefully consider as part of our commitment to continuous improvement.
Earlier coverage: Andrew Mountbatten-Windsor Summoned to Give Evidence in Fraud Trial
