The Duke and Duchess of Edinburgh could be making up to £130,000 a year by subletting converted stables on their Surrey estate, The Sun reports.
The publication claims that the old stables, which are 400 metres away from Edward and Sophie's 120-room mansion Bagshot Park, were recently advertised as office space for £10,834 a month, totalling just over £130,000 a year.
A royal source has confirmed to HELLO!: "The property in question is not rented to any tenant and it is not on the market."
The sublet appears to have been taken off the market in December, The Sun reports, but it looks like the converted stables are being refurbished with a plan to put them back on the market this summer. The last tenants moved out in October.
A rental brochure, seen by the publication, describes the stables as a "Grade II Listed Office Building but with modern finishes, fibre connectivity, set within the landscaped grounds of Bagshot Park". The office block has meeting rooms, a kitchen, tea points, toilets and showers, plus a garden and 30 parking spaces. Previous tenants have included pharmaceutical companies.
Controversial issue of royal leases
While the sublet is not currently on the market and there is no legal wrongdoing for subletting the stables, the new revelation that the Edinburghs could be making up to £130,000 a year in extra gross income when it is in operation – after only paying a peppercorn rent (a token nominal sum) on Bagshot Park – is sure to ruffle feathers among critics.
© Getty ImagesAt the end of last year, after Andrew's infamous peppercorn rent on Royal Lodge was revealed, the government's Public Accounts Committee launched an inquiry into the Crown Estate and its lease arrangements for royal homes.
The investigation is focused on whether the Crown Estate, which manages land and property on behalf of the King, is charging fair market rates on royal residences. It was revealed last year that Edward and Sophie, like Andrew, only pay a peppercorn rent on their Surrey home.
The Public Accounts Committee is currently looking into the Edinburghs' lease on Bagshot Park, as well as other royal residences including apartments within St James's Palace used by Princess Beatrice and previously also her sister Eugenie.
© Getty ImagesThe controversial issue is whether this arrangement – of only paying peppercorn rent on lavish royal properties – has been depriving the public purse of potential revenue.
By law, 100 per cent of the Crown Estate's net profits are paid directly to the Treasury each year. So when a property is leased to a royal at "peppercorn" value, rather than market value, the Crown Estate's total profit is lower, and therefore the Treasury receives less money – money which could be spent on public services such as schools, hospitals, and infrastructure.
The Public Accounts Committee is currently collecting written evidence and is expected to hold oral evidence sessions throughout 2026. It may not have the power to evict royal residents, but it can put pressure on the Crown Estate to renegotiate existing leases or change how it manages future ones.
Prince Edward's peppercorn rent
Peppercorn rent is a term used to describe a small, nominal rent, such as one peppercorn, to satisfy a legal requirement for a contract to be binding.
Edward initially leased Bagshot Park for 50 years for £5,000 a year in March 1998. After moving in, he spent £1.36 million to renovate the property, while the Crown Estate covered another £1.64 million of renovation costs. Because Edward had invested his own money into the state-owned home, his annual rent was adjusted, eventually reaching £90,000 a year, described by the National Audit Office as "market value".
© Getty ImagesThe Ministry of Defence returned the site to the Crown Estate in 1996, attracting two commercial proposals: one for a conference facility and another for a hotel conversion. But both were rejected and the Crown Estate opted to lease the property to Edward again. As the Land Registry report was heavily redacted, it made it impossible to establish whether he continued to pay a market rent.
In 2007, Edward paid £5 million upfront to extend the lease to 150 years. In exchange for this, he was given a peppercorn rent.
Critics have since questioned whether Edward, a senior working royal yet 15th in line to the throne, can justify his occupation of a property that could otherwise be leased by the Crown Estate for taxpayer benefit. And that if the Edinburghs are on a peppercorn rent, any profit made form subletting should to back to the Crown Estate, and therefore the Treasury, instead of their private income.
