Prince Andrew received an undisclosed rental income from sub-letting three cottages on the Royal Lodge estate, which he leased from the Crown Estate, a public spending watchdog has revealed. The National Audit Office (NAO) report also disclosed that King Charles III covers the rent for accommodation in royal palaces for Prince Andrew's daughters, Princesses Eugenie and Beatrice, neither of whom are working royals.

This is the first report into royal residences in two decades and highlights that Prince Andrew and his family and staff utilized 12 properties, owned by either the Crown Estate or the Royal Household. A Buckingham Palace spokesperson stated that the report aligns with the Royal Household's commitment to transparency.

The NAO report indicates that Princess Eugenie resides in a property within Kensington Palace, and Princess Beatrice has accommodation in St James's Palace. They do not incur any rent for these central London residences; instead, the costs are covered by the privy purse, which represents the monarch's personal funds, paid to the Royal Household. Both palaces receive public funding through the Sovereign Grant for their maintenance.

Norman Baker, a former Home Office minister and a critic of royal finances, described the situation as outrageous, arguing that subsidizing luxury accommodation in this manner effectively means the public is being exploited. He suggested that such arrangements are no longer sustainable and that public deference is diminishing.

A source from within Buckingham Palace indicated that the rent paid for these properties allocated to non-working royals is intended to offset any publicly funded expenditure, thereby ensuring no additional cost to the Sovereign Grant, which finances the official duties of the monarchy. While the report does not specify the exact rent amount for the princesses' palace properties, the rate is reportedly set at 60% of the open market value.

The NAO report was commissioned following the scandal involving Prince Andrew and is expected to be followed by an inquiry from Members of Parliament on the Public Accounts Committee. The report details a collection of 12 properties associated with Prince Andrew and his family's use. Despite Prince Andrew vacating the Royal Lodge earlier this year and relocating to Sandringham in Norfolk, he retains the lease for the Royal Lodge estate.

This revelation raises further questions about the financial arrangements and transparency surrounding royal residences and the use of public funds. The NAO's investigation aims to provide a clearer picture of how these assets are managed and funded.

Further scrutiny is anticipated as the Public Accounts Committee delves into the findings, potentially leading to new guidelines or policies regarding royal property and financial disclosures.