Andrew Mountbatten-Windsor was collecting as much as £2,000 monthly by leasing out three cottages at his former residence, Royal Lodge, without himself incurring any rental costs, as reported by the public spending watchdog. The Public Accounts Committee investigation into the Crown Estate notes that the former Prince Andrew did not consistently lease all the properties, making it impossible to determine the total amount he might have earned during his more than 20 years there.
The proceeds from the sub-letting were directed to Mountbatten-Windsor, who had secured a 75-year lease for Royal Lodge in 2003 and had contributed approximately £7.5m towards its refurbishment and other fees, thereby eliminating his obligation to pay rent.
Sub-letting Arrangement
Mountbatten-Windsor periodically let three cottages on the property, which were reportedly for staff and at a rate below market value, with Mountbatten-Windsor retaining the income. The Crown Estate had informed MPs that it had no authority over the amount Mountbatten-Windsor charged – and that sub-letting was permitted under the terms of his lease.
In response, the Public Accounts Committee has proposed that, going forward, the standard policy for such Crown Estate properties should be to prohibit such sub-letting, except in cases with a specific exemption.
Financial Settlement After Departure
The Public Accounts Committee report also details the events following Mountbatten-Windsor’s departure from Royal Lodge. He was due a payment of approximately £300,000 for the early termination of his lease, but due to “dilapidations” in the building’s condition, a repair bill of £1.8m was issued. This resulted in a balance of £1.5m being owed to the Crown Estate, which King Charles settled on his brother’s behalf.
Rent Concerns for Non-Working Royals
The watchdog’s report also expressed concerns about the rent levels charged to non-working royals provided with accommodation in three royal properties. These were identified as Mountbatten-Windsor’s daughters, Princess Beatrice and Princess Eugenie, and Prince and Princess Michael of Kent. A National Audit Office report had disclosed earlier in the year that Princess Beatrice and Princess Eugenie bear no personal cost for their accommodation at St James’s Palace and Kensington Palace respectively.
The King covers their rent payments to the Royal Household from his own private funds. However, the group of MPs questioned whether the rent for such properties assigned to non-working royals was based on current valuations and advocated for a more uniform method to guarantee value for money.
A Crown Estate spokeswoman said: 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.
