Prince William ‘to crackdown on royal property rules when he becomes King’ after Andrew cashed in with rent deals

Prince William will consider implementing tighter rules around royal property when he is king, including stopping those who do not have official duties from living rent-free in palaces, according to a report.

Sources have told The Sunday Times that William wants his reign to ensure that the monarchy is “fit for purpose in the modern era”, which will involve him examining the institution’s costs.

The newspaper reports that property allowances will be high on this list, said to be a priority for the future king.

William will reportedly also consider banning the subletting of homes by royals, and he is also said to be concerned about the optics of non-working royals having preferential living arrangements.

It comes after a report from the National Audit Office (NAO) last week revealed Andrew Mountbatten-Windsor was pocketing rental income from three cottages on the Royal Lodge estate, while only paying a peppercorn rent himself.

The report did not detail how much income Mr Mountbatten-Windsor generated from subletting the cottages, which cottages were sublet, or for how long they were rented out. It also did not disclose who his tenants were.

However, a valuer estimated that the former Duke of York could have made “up to £180,000 per year” from subletting the three properties.

The “unique setting, security and prestige” of the properties mean the former prince could have been bringing in between £7,500 and £15,000 per month in rental income, according to Robin Edwards, a property buying agent at Curetons.

The NAO report revealed the property arrangements of members of the royal family, including the Prince and Princess of Wales. It was prompted by the controversy surrounding the disgraced former duke’s lease and revelations that he had paid almost no rent since 2003.

William and Kate Middleton rent a family home near Windsor, for which they pay £307,200 a year.

Auditors also found that King Charles is paying the rents of Mr Mountbatten-Windsor’s two daughters, Princess Beatrice and Princess Eugenie, for their accommodation at St James’s Palace and Kensington Palace respectively.

The King’s nieces Eugenie, 36, and Beatrice, 37, are non-working royals who both have jobs, and Beatrice is married to a multimillionaire property developer.

Princess Beatrice’s rent at St James’s Palace is discounted to 68 per cent of open market value, and Princess Eugenie’s Ivy Cottage at Kensington Palace is discounted to 64 per cent of open market value, according to the report.

It does not detail the figures paid by the King through the privy purse.

A spokesperson for Buckingham Palace previously said the report was “in line with The Royal Household’s commitment to transparency” and they hope that the findings will “help correct, clarify or contextualise a number of points regarding Royal properties”.

In an interview with comic actor Eugene Levy for Apple TV+ in October last year, William said “change is on my agenda – change for good”.

The heir to the throne set out his approach to the monarchy, saying “I want to question things more”, but central to his world was Kate and their three children, “the most important thing in my life is family”.

According to The Times, William, 43, is “mindful of how much the monarchy costs” and will be “hands on” to restructure it into a leaner organisation.

The Independent has approached Kensington Palace for comment.