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NAO Report Puts King Charles’s Housing Arrangements for Beatrice and Eugenie Under Scrutiny

Princess Beatrice and Eugenie's royal residences are under renewed scrutiny as questions emerge over their below-market rents.

(L) King Charles visits the supplier of protective, medical, and defense equipment; (R) Princess Eugenie and Princess Beatrice at the Lord Mayor's reception. (Cover Image Source: Getty Images | (L-R) Chris Jackson)
(L) King Charles visits the supplier of protective, medical, and defense equipment; (R) Princess Eugenie and Princess Beatrice at the Lord Mayor's reception. (Cover Image Source: Getty Images | (L-R) Chris Jackson)

Princess Beatrice and Princess Eugenie may not be working royals, but that hasn't stopped questions from being raised about some of the privileges they continue to enjoy. Their living arrangements have now caught fresh attention, putting the sisters in an awkward spot as scrutiny over the Royal Family's spending continues.

Princess Beatrice and Princess Eugenie attend the traditional Easter Sunday church service at St. George's Chapel, Windsor Castle, on March 27, 2016, in Windsor, England. (Image Source: Getty Images | Max Mumby)

Royal properties are facing renewed attention after the Public Accounts Committee (PAC) published its latest findings and recommendations. The report has also brought Beatrice and Eugenie's living arrangements into focus, given that both sisters occupy royal residences partly funded by King Charles.

The committee has urged the Royal Household to follow a clear and consistent system when deciding how much rent should be charged for its properties. The recommendation comes after questions emerged over both Princess’ rental arrangements, with both reportedly paying amounts calculated using property valuations that had not been updated for years.

The issue first came to light following a National Audit Office (NAO) investigation, which found that Charles had been paying the difference on his nieces' reduced rents from his own funds. This arrangement has continued despite neither Beatrice nor Eugenie carrying out official royal duties.

King Charles III makes a speech at the Future Bahamas Youth Rally and Exhibition during his visit to the Bahamas on October 27, 2026, in Nassau, Bahamas. (Image Source: Getty Images | Chris Jackson)

Following the NAO report, the Royal Household was expected to review the agreements for Beatrice's St James's Palace apartment and Eugenie's Kensington Palace home, with royal sources stating that financial matters were kept under "regular review."

The arrangements date back to Queen Elizabeth II's time, when the sisters' accommodation was covered through the monarch's private finances. According to the NAO, Beatrice and Eugenie held 12-month property agreements that were renewed every year, with the cost met from the King's Privy Purse. The Palace is now facing pressure to be more forthcoming about how these arrangements work.

Jack Brooksbank, Princess Eugenie, Edoardo Mapelli Mozzi, and Princess Beatrice arrive for the Royal wedding of Peter Phillips and Harriet Sperling. (Image Source: Getty Images | Chris Jackson)

The sisters have homes outside their royal residences too. Beatrice shares a Cotswolds home with her husband, Edoardo Mapelli Mozzi, alongside her London base within St James's Palace. Eugenie splits her time between the UK and Portugal, where she owns a home with husband Jack Brooksbank, while Ivy Cottage at Kensington Palace serves as her London residence.

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