In a revelation that’s sent ripples through both royal circles and the British public, a new report from the National Audit Office (NAO) has uncovered that Princess Beatrice and Princess Eugenie, daughters of Andrew Mountbatten-Windsor, have lived rent-free in some of London’s most prestigious royal residences for nearly two decades—at King Charles’s expense. The pair, neither of whom are working royals, continue to enjoy this privilege even after their father’s fall from grace and subsequent departure from Royal Lodge Windsor, according to The Independent and corroborated by several other outlets.
The NAO’s investigation, published on June 5, 2026, shines a bright light on the intricacies of royal property arrangements. While the public might assume that only those carrying out official duties benefit from palace accommodations, the reality appears far more complex. Princess Beatrice, now 37, has occupied a four-bedroom, three-bathroom apartment at St James’s Palace since she was 19, a time when she was just starting university, as reported by Substack’s The Royalist. Her husband, Edoardo Mapelli Mozzi, is no stranger to luxury himself, owning a £3.5 million home in the Cotswolds and running a successful property development business.
Princess Eugenie, aged 36 and currently expecting her third child, rents Ivy Cottage on the grounds of Kensington Palace. She splits her time between this royal residence and a $6.7 million mansion in Portugal with her husband, Jack Brooksbank. Yet, neither princess has paid a penny in rent for their London homes—the cost, estimated to be more than £278,000 per year in total, is covered by King Charles out of the Privy Purse, which is funded by his private estate, the Duchy of Lancaster, according to The Independent.
This arrangement stands in stark contrast to the policy for other non-working royals, who are supposed to pay a discounted rent—set at about 60% of the open market rate—due to the security requirements of living in royal residences. Robin Edwards, a property agent at Curetons, explained to The Independent that the unique prestige and location of these properties mean they would command “significant premiums” if ever offered on the open market. For Ivy Cottage, monthly rents could range from £10,000 to £15,000, while Beatrice’s St James’s Palace apartment could fetch £15,000 to £20,000 per month.
Yet, the NAO report revealed that the rents for both princesses had, until this year, been calculated using outdated valuations—Eugenie’s from 2018 and Beatrice’s from 2020. Even with the updated figures, the King’s private funds continue to foot the bill, insulating the princesses from any impact of rate increases. The Crown Estate confirmed to The Independent that these leases were agreed “in line with independent, professional advice and open market valuations.”
It’s not just the princesses’ living arrangements that have come under scrutiny. Their father, Andrew Mountbatten-Windsor, was found to have sublet three cottages on the Windsor estate while occupying Royal Lodge, pocketing the profits himself. The NAO could not determine exactly how much Andrew made from these sublets, but the properties now stand empty following his eviction. Andrew surrendered his lease last autumn but did not vacate until January 2026, when he moved to a home on the Sandringham estate, also owned by King Charles. He may be due compensation of £301,000 for the early termination of his lease, though this is likely to be offset by the cost of repairs needed at Royal Lodge, according to Royal Central.
The financial arrangements for Beatrice and Eugenie’s residences are said to have been originally put in place by the late Queen Elizabeth II, with King Charles continuing the practice at his discretion. According to The Independent, the rent payments made by the King cover maintenance and operational costs, which are met by the Sovereign Grant for the homes, ensuring that there is no additional cost to the grant as a result. Financial matters within the Royal Household are, however, kept under regular review.
For the wider royal family, the NAO report details a complex web of property arrangements. Eleven working royals occupy rent-free accommodations in exchange for official duties, while 145 properties on royal estates are allocated to staff at a rent formula based on 16.7% of their gross pensionable salary. An additional 255 properties are let to military knights pensioners or rented privately to individuals who pass security checks, as outlined by Byline Times.
Not everyone is pleased with these revelations. Norman Baker, a former Liberal Democrat minister and long-time critic of royal finances, was quoted by The Nightly and The Independent as saying, “There’s no way that non-working members of the Royal family should be subsidised by the Duchy of Lancaster. The Royal family is yet again taking the public for a complete ride.” His comments echo a broader public sentiment that the privileges of non-working royals should be subject to more rigorous scrutiny, especially at a time when the monarchy’s finances are under the microscope.
Buckingham Palace, for its part, expressed appreciation for the NAO’s work. A spokesperson told The Independent, “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 contextualise a number of points regarding royal properties. 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.”
For Princess Beatrice and Princess Eugenie, the scrutiny is unlikely to subside soon. Both are independently wealthy, with Beatrice’s husband’s business interests and Eugenie’s life split between London and Portugal. Yet, the continued public funding of their lavish London homes—at a time when neither performs official royal duties—raises uncomfortable questions about privilege, fairness, and the future of royal entitlements.
As the NAO’s findings are set to be discussed further with the Public Accounts Committee, and with public scrutiny only growing sharper, the debate over royal perks and accountability is sure to continue. For now, the story of two princesses living rent-free in the heart of London—thanks to their uncle the King—remains a potent symbol of the monarchy’s enduring, and sometimes controversial, traditions.