Britain’s disgraced former prince Andrew earned a private income from subletting cottages while paying a symbolic “peppercorn rent” for a mansion for over two decades, government auditors revealed Friday.
The report into the royal family’s residences was sparked by controversy over Andrew’s living arrangements following his banishment from public life for his ties to late US sex offender Jeffrey Epstein, and shines new light on the royal family’s finances.
King Charles III’s younger brother, now known as Andrew Mountbatten-Windsor after being stripped of his titles last year, lived until recently in the Royal Lodge on the royal family’s Windsor estate near London.
While living rent-free in a 30-room house, Andrew pocketed proceeds from subletting three cottages on its large grounds, a report on royal property income by the National Audit Office (NAO) revealed.
“We do not know what rent was charged,” the auditors said, adding that the cottages have been vacant since April.
Andrew’s daughters Beatrice and Eugenie have apartments at royal palaces with rent paid from the privy purse — King Charles’s private income — despite not being working royals, the report also revealed.
“The royal family is yet again taking the public for a complete ride,” said Norman Baker, a lawmaker for the centrist Liberal Democrats and long-time critic of royal finances.
The report was released as British media carried a photo of Andrew with what appeared to be large bruise on his face. They reported that it was not a cause for concern.
Parliament’s Public Accounts Committee is set to launch an inquiry this year into royal properties, as debate rages about the monarchy’s opaque living arrangements.
Margaret Hodge, a Labour peer who chaired the committee between 2010 and 2015, told the BBC it was “shocking” the NAO did not know how much money Andrew made from the sublets.
The Times newspaper reported that some of Andrew’s tenants were long-serving staff.
Andrew, the second son of the late Queen Elizabeth II was briefly arrested in February amid new revelations stemming from his friendship with Epstein, who died in a New York prison in 2019 while awaiting trial on sex-trafficking charges.
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Officers are probing allegations that Andrew shared sensitive information with Epstein, a former high-flying financier, during the former prince’s time as UK trade envoy between 2001 and 2011.
Police searched the Royal Lodge in February as part of the probe into his suspected misconduct in public office. He has not been charged.
Andrew has since moved to the king’s private Sandringham estate in eastern England.
He paid a £1 million ($1.4 million) “premium” to lease the Royal Lodge, agreeing to spend £7.5 mn on improvements to secure a 75-year-lease on a peppercorn rent.
The lease allowed Andrew to claim compensation for ending it early.
By moving out this year, he could claim over £300,000 but is expected to receive nothing because of needed repairs, according to the Crown Estate.
This self-funding public corporation that manages royal properties is supposed to follow finance ministry guidelines on effective use of public funds.
Charles has been undertaking an overhaul of the royal family’s finances since his mother’s death in 2022.
His heir, Prince William, the Prince of Wales, pays over £300,000 annual rent for a house in Windsor, Forest Lodge, the NAO said.
A Buckingham Palace spokesperson said the report was “in line with the royal household’s commitment to transparency”.
“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,” they added.
Members of the royal family are due to attend the wedding of Peter Phillips, the son of Charles’s sister Princess Anne, to nurse Harriet Sperling at a private ceremony on Saturday.
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