Former prince Andrew under renewed scrutiny for profiting off royal property
Former prince Andrew under renewed scrutiny for profiting off royal property
Jennifer Hassan, USA TODAYFri, June 5, 2026 at 4:44 PM UTC
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Andrew Mountbatten-Windsor made money by subletting three cottages on the Royal Lodge estate, while he lived there rent-free, according to a report released June 5 by the United Kingdom's independent public spending watchdog.
The rare report into royal living arrangements, published by the National Audit Office, is the first since 2005. The investigation revealed that Mountbatten-Windsor, who lived at Windsor's Royal Lodge mansion for more than two decades, personally profited from renting out the properties on the estate, though the amount he received was not disclosed.
"Three cottages on the Royal Lodge estate were also sublet with income generated from subletting payable to Andrew Mountbatten-Windsor," the report said. According to the terms of his lease, which he holds until October 2026, the former prince is permitted to sublet up to three properties on the estate.
In 2003, the disgraced royal paid £1 million ($1.3 million) for a 75-year lease at the 30-room property, which included eight cottages, the report said. The property is leased by the Crown Estate, the organization that manages the extensive royal land and property portfolio. Andrew also paid £7.5 million ($10 million) for renovations. The Crown Estate has indicated that once repairs are taken into account it is unlikely Andrew will receive compensation.
A drone view shows Royal Lodge, a large property on the estate surrounding Windsor Castle. October 21, 2025.
The Royal Lodge lease has an early surrender clause, the report said. Meaning Andrew, who requested early surrender of the property's lease in October, could be entitled to compensation payment of £301,967.66 (more than $405,000).
When the former prince first signed the contract on the sprawling property, it was agreed under a historical term that he would pay a "peppercorn rent," the report said, noting that the terms indicates "a very small amount of money paid as rent but in practice is zero pounds."
The report sparked some outrage on British soil, with critics saying the rent Andrew received should have gone directly to the Crown Estate, which pays its profits to the UK Treasury for public spending. A percentage of the profits is given to the monarch in what is known as the Sovereign Grant, this covers the running of the royal household including staff salaries and property maintenance.
Former Home Office minister Norman Baker, said it was "outrageous to subsidize luxury accommodation" in this way and that the British public was "being taken for a ride."
Buckingham Palace said the palace 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 contextualize a number of points regarding Royal properties," the palace continued. "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."
Andrew Mountbatten-Windsor and Britain's King Charles III leave following a Requiem Mass, a Catholic funeral service, for the late Katharine, Duchess of Kent, at Westminster Cathedral in London on September 16, 2025.
Mountbatten-Windsor was stripped of his royal titles last year and then evicted from Royal Lodge as pressure mounted on King Charles III to take action against his younger brother, whose links to Jeffrey Epstein enmeshed him in scandal. It was the controversy and allegations stacking up against Andrew that prompted British lawmakers to call for a review of royal housing and financial arrangements.
Andrew now lives more than 100 miles outside of London, on the royal family's private Sandringham estate in the county of Norfolk. He was arrested earlier this year and remains under police investigation. Mountbatten-Windsor has repeatedly denied any wrongdoing.
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The report noted that the properties in question are now vacant and have been since April. British media, citing royal sources, reported that Mountbatten-Windsor may have rented the cottages to staff or retired staff members.
The report also delved into the housing arrangements of other royals.
Princess Beatrice and Princess Eugenie do not pay rent for London residences
Andrew's daughters with ex-wife Sarah Ferguson, do not pay any rent for their central London homes, the investigation revealed. Princess Beatrice has an apartment in in St James's Palace and Princess Eugenie has a cottage in Kensington Palace. Both princesses have jobs and are known as non-working royals.
Both of the palaces are maintained by public funding, through the Sovereign Grant, the BBC reported.
Their accommodation is paid for by their uncle, King Charles III, out of what is known as the Privy Purse, the monarch's own funds, though the cost of the rent was not revealed. The rents on both properties, until this year, were based on valuations from years ago.
Some critics of the monarchy pointed out that in a climate of climbing rents and with many overwhelmed by the cost of living, the report's findings may spark anger.
Baroness Margaret Hodge, former chairwoman of the Public Accounts Committee, told BBC Radio 4's Today program that it was "worrying" to see that non-working royals were being "subsidized."
"Now, is it appropriate for non-working royals to be subsidized by the taxpayer from a fund that belongs to the taxpayer?" she said. "The Crown Estate is our money, it's taxpayers' money, it's not theirs, and whoever runs that has to always ensure the taxpayers' interest."
A spokesperson for The Crown Estate told USA TODAY in an email the organization welcomed the review. It said the report "confirms its leases with members of the Royal Family were agreed in line with independent, professional advice and open market valuations."
Prince William and Princess Kate's property has three cottages and a barn
William and Catherine, the Prince and Princess of Wales, currently live at Windsor's Forest Lodge. Before they moved into the mansion with their three children, the Crown Estate paid for repairs worth almost £400,000 ($534,000).
The future king and queen signed a 20-year-lease on the property in July 2025 and pay £307,200 ($410,691) a year for the home. There are three cottages and a barn on-site.
They did not pay an upfront deposit as they cover internal refurbishment costs, the report said.
This article originally appeared on USA TODAY: Former prince Andrew under renewed scrutiny. What happened now?
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