Prince Andrew sublet Royal Lodge cottages, MPs reveal

Prince Andrew received an undisclosed income from subletting three cottages on the Royal Lodge estate, a cross-party committee of MPs has revealed. The Public Accounts Committee (PAC) has issued recommendations concerning lease arrangements for the Crown Estate and rent setting policies within the Royal Household.

The PAC's inquiry found that the former Duke of York sublet cottages on the Royal Lodge property, generating a combined income of just over £2,000 per month before maintenance and expenses for a period of less than a year from late 2021. The exact total sub-letting income over two decades remains undisclosed.

Lease and Rental Policy Recommendations

The committee recommended that the Crown Estate should adopt a standard provision in all future leases that prohibits sub-letting, unless the landlord's prior permission is obtained. This permission should not be unreasonably withheld, and the Crown Estate would be expected to obtain relevant financial details, according to the report published on Friday.

The PAC noted that the Crown Estate had not clearly identified specific lessons learned from the Royal Lodge lease arrangement, describing the estate as reluctant to discuss future practices due to the lease being a product of its time. The mansion in Windsor Great Park was the only royal family property with an early surrender clause.

In addition, the committee called for the Royal Household to implement a consistent policy for setting rents in its residential properties. An earlier investigation by the National Audit Office found that outdated valuations had led to inconsistencies in rents charged for non-working members of the Royal family within occupied royal palaces.

The Royal Household has been advised to establish defined intervals for independent valuations and rent reviews to ensure rental income aligns with market rates and maximises value for money. This follows findings that Princess Eugenie's rent for Ivy Cottage at Kensington Palace was based on a 2018 valuation until this year, and Princess Beatrice's apartment in St James's Palace on a 2020 valuation.

Royal Lodge Restoration Costs

The King privately covered the £1.5 million cost for the repair and restoration of Royal Lodge. This payment was made to the Crown Estate after £302,000 compensation was deducted from the £1.8 million bill for Prince Andrew's early surrender of his lease.

The PAC also recommended that the Crown Estate publicly disclose how it balances its statutory responsibilities to maintain and enhance asset value with contributing to environmental objectives. The committee found the estate provided limited insight into how these were measured.