New Audit Reveals Andrew Sublet Royal Lodge Cottages and Pocketed Income While Paying Peppercorn Rent
Former Prince Andrew's long-running association with Royal Lodge is once again under scrutiny, and this time with receipts!
Andrew Mountbatten-Windsor's tenure at Royal Lodge is facing renewed scrutiny following a government report that reveals he financially benefited from his housing setup. The disclosure has reignited a fierce debate over royal property privileges, transparency, and whether taxpayers are getting a fair deal from agreements involving the disgraced Duke.
As reported by HELLO!, the National Audit Office (NAO) uncovered the arrangement during a review of royal residential properties. According to the report, Andrew was permitted to sublet up to three cottages within the Royal Lodge estate and pocket the income. This setup allowed the disgraced royal to turn a double profit: he brought in rental income while paying only a "peppercorn" rent for his own 30-room Windsor mansion—a perk granted after he spent roughly $10.2 million (£7.5 million) on renovations when negotiating the lease in 2003.
Although the exact amount earned through the subletting arrangement has not been disclosed, the report has prompted criticism from politicians and royal accountability campaigners. Former Liberal Democrat minister Norman Baker condemned the arrangement, arguing that any income generated from the cottages should have been returned to the Crown Estate. "The whole thing is outrageous," he said. Baker continued, "It shows an absolute total contempt for the taxpayer, not only that Andrew was able to have a peppercorn rent for a gigantic property, but then to make potentially millions on the side from subletting properties."
Further to the arrangement, it was also found that it contained an early surrender clause, which means that Andrew could be entitled to compensation for vacating the property before the lease expires. Reports suggest any payment could range from approximately $411,000 (£301,967) to $665,000 (£488,342), depending on the property's condition and the timing of the lease surrender. The exact final amount, however, remains unrevealed.
Soon after the reports, the public started questioning transparency and royal privileges, and, reacting to it, a palace spokesperson shared, "We are grateful to the National Audit Office for this report, which is 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." They 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."
