Andrew Mountbatten-Windsor is facing renewed scrutiny after a bombshell report revealed he received private income from properties on the Windsor estate while paying only a peppercorn rent on his sprawling Royal Lodge home.
The findings, published by the National Audit Office as part of a major review into royal residential property arrangements, have reignited debate surrounding Andrew's long-standing housing arrangements and the wider accommodation provided to members of the royal family.
According to the report, Andrew was permitted to sublet up to three cottages located within the Royal Lodge estate and retain any income generated from those properties.
© Samir Hussein/WireImageThe arrangement existed while he occupied the vast Windsor property under a lease that required only a nominal rent payment following a £7.5 million renovation commitment made when the agreement was negotiated in 2003. While the exact amount Andrew earned remains private, the revelation has sparked criticism from campaigners and politicians alike.
Former Liberal Democrat minister Norman Baker described the arrangements as "outrageous", arguing that any profits generated from the cottages should have been returned to the Crown Estate rather than retained privately.
"The whole thing is outrageous," he said. "It shows an absolute total contempt for the taxpayer, not only that Andrew was able to have a peppercorn rent for a gigantic property, but then to make potentially millions on the side from subletting properties."
© Getty ImagesThe controversy comes just months after Andrew vacated the Royal Lodge and moved to accommodation on King Charles's private Sandringham estate in Norfolk. His subletting arrangements reportedly ended in April 2026, although he technically retains the lease until October.
Learn more about the controversy below...
King Charles pays accommodation costs for Princess Beatrice and Princess Eugenie
© Dave Benett/Getty ImagesThe report also shed light on the living arrangements of Princess Beatrice and Princess Eugenie, revealing that King Charles personally covers the cost of their accommodation within royal residences through his private Duchy of Lancaster income.
Princess Eugenie lives at Ivy Cottage within Kensington Palace grounds, while Princess Beatrice occupies an apartment at St James's Palace. Both women are non-working royals and have established careers outside the monarchy. Beatrice is also married to property developer Edoardo Mapelli Mozzi.
The National Audit Office found that rent assessments for both properties had been based on outdated market valuations for several years, resulting in adjusted rental rates that remained significantly below full market value. Updated valuations were only introduced this year.
Although the exact sums being paid by the King have not been disclosed, the revelation has prompted fresh questions about the financial support extended to members of the wider royal family.
© Getty Images*Month unconfirmed
June 2000
Epstein and Maxwell attend a party at Windsor Castle to mark Prince Andrew's 40th birthday, the Princess Royal’s 50th, the Queen Mother’s 100th and Princess Margaret's 70th, hosted by Queen Elizabeth II.
March 2001
Later, in 2014, Virginia Giuffre alleges that at age 17 she was trafficked by Epstein and forced to have sex with Prince Andrew on three occasions. The first occasion allegedly occurred in Maxwell’s London townhouse in March 2001. In the court filings and in her memoir released in October 2025, she claimed the other occasions occurred at Epstein's New York mansion and his private Caribbean island.
June 2008
Epstein admits to prostituting minors and is convicted, receiving an 18‑month prison sentence.
2009*
Epstein's former housekeeper, Juan Alessi, testifies during his employer's trial that Andrew received ''daily massages'' at Epstein's Florida home.
July 2009
Epstein is released from prison.
December 2010
Andrew is photographed with Epstein in New York's Central Park.
February 2011
The Mail on Sunday publishes a photo of Virginia's alleged first meeting with Prince Andrew. Andrew later emails Epstein saying ''we are in this together''.
March 2011
Alastair Watson – who spent nine years as Andrew’s private secretary – writes to The Times saying Andrew met Epstein in the ''early 1990s''. Yet eight years later, Andrew told Newsnight that he first encountered Epstein through his ''girlfriend back in 1999'', later saying he saw Epstein ''infrequently and probably no more than once or twice a year''.
July 2011
Andrew resigns as UK trade envoy shortly.
December 2014
In a Florida court filing, Virginia alleges being trafficked by Epstein and also alleges to have been forced to have sex with him, Prince Andrew and other men. The judge later said in 2015 the claims are ''immaterial and impertinent'' to the case against Epstein.
January 2015
Buckingham Palace denies Andrew has committed any impropriety after he is named in US documents linked to Epstein.
At the World Economic Forum in Davos, Andrew makes his first public engagement since the allegations. He says: ''I just wish to reiterate, and to reaffirm, the statements that have already been made on my behalf by Buckingham Palace.''
2015*
In a civil suit filed against Ghislaine Maxwell, Giuffre testifies that Epstein paid her $15,000 to have sex with Andrew.
May 2016
During a deposition in her case against Maxwell, it emerges that Giuffre lent the infamous photo to the FBI in 2011 but allegedly last saw it packed in a box and shipped from Colorado to Sydney sometime between between 2011 and 2016, when she emigrated to Australia.
June 2018
Alleged Chinese spy Yang Tengbo visits Buckingham Palace twice to meet Andrew. He is also said to gain entry to St James’s Palace and Windsor Castle after being invited by the Prince.
2019*
A newly released document includes a claim from Johanna Sjoberg, who has said she was an associate of Jeffrey Epstein, alleging that Prince Andrew touched her breast while she was sitting on a couch in Epstein's Manhattan apartment in 2001 - an allegation he has always denied.
August 2019
Epstein is found dead in his prison cell on 10 August, an apparent suicide, after being charged with sex trafficking.
Separately David Rogers, a pilot on Epstein's private jet, claims Andrew was a passenger on past flights with Epstein and Giuffre. Rogers also testifies that Epstein, Andrew and Giuffre travelled to the US Virgin Islands on 11 April 2001.
Buckingham Palace says the report contains ''inconsistencies'' and notes that in some cases Andrew was on a different continent.
In a statement, the Palace says Andrew is ''appalled by the recent reports of Jeffrey Epstein’s alleged crimes''.
Andrew also issues a statement: ''At no stage during the limited time I spend with him (Epstein) do I see, witness or suspect any behaviour of the sort that subsequently leads to his arrest and conviction.''
November 2019
BBC Newsnight broadcasts an interview in which Andrew speaks about his relationship with Epstein ''with no bars.'' He says he has ''no recollection'' of ever meeting Giuffre and adds he could not have had sex with her in March 2001 because he was at Pizza Express with his daughter, Beatrice, that day.
He also says he ''does not regret'' his friendship with Epstein, though he admits he should not have visited him in New York in 2010 to break off their friendship.
Four days after the interview, he announces he is stepping back from royal duties ''for the foreseeable future'' with permission from Queen Elizabeth II.
He says he ''deeply sympathises'' with Epstein’s victims and is willing ''to help any appropriate law enforcement agency with their investigations, if required.''
December 2019
Giuffre appeals to the British public in a BBC Panorama interview released in December 2019, urging them to ''stand up beside me… help me fight this fight'' and ''not accept this as being OK.''
January 2020
A US prosecutor claims Andrew has provided ''zero co‑operation'' in the Epstein sex trafficking inquiry.
US Attorney Geoffrey Berman speaks outside Epstein's Manhattan mansion saying Andrew's lawyers have been contacted by prosecutors and the FBI, who request to interview him.
March 2020
Andrew’s aide, Dominic Hampshire, writes to Yang Tengbo describing the alleged Chinese spy as one of ''Andrew's closest internal confidants''.
June 2020
Andrew's lawyers say he offered to assist the US Department of Justice ''on at least three occasions this year'' in their Epstein investigation.
Hours later, Berman says Andrew ''again seeks to falsely portray himself to the public as eager and willing to co‑operate,'' though he ''repeatedly declines'' requests to schedule an interview.
August 2021
Giuffre's lawyers file a civil suit against Andrew. The Prince is the only named defendant in the 15‑page claim, though Epstein and Maxwell are referenced throughout.
December 2021
Ghislaine Maxwell is convicted in New York of aiding Epstein’s sexual abuse of teenage girls.
January 2022
A US judge rules the civil case against Andrew may proceed.
Andrew is stripped of his military roles and royal patronages, and he relinquishes his HRH title. Buckingham Palace states Andrew ''continues not to undertake any public duties and is defending this case as a private citizen.''
February 2022
Court documents reveal that Andrew and Giuffre reach a ''settlement in principle'' in the civil claim. The papers say Andrew promised to make a ''substantial donation'' to Giuffre’s charity ''in support of victims' rights'', and pledged to ''demonstrate his regret for his association with Epstein.''
January 2024
Unsealed documents linked to Ms Giuffre’s civil claim against Ghislaine Maxwell revisit previously made allegations about Prince Andrew - including references to purported sex tapes and claims he was present at an event involving underage girls. Andrew has always denied any involvement in criminal activity.
December 2024
At a High Court hearing it emerges that Yang Tengbo, the alleged Chinese spy, is a ''close'' confidant of Andrew. Andrew issues a statement saying he ceased ''all contact'' with Yang once concerns arose.
Andrew is absent from the royal family's traditional gathering at Sandringham.
April 2025
Giuffre tragically dies by suicide aged 41 in Neergabby, Western Australia.
October 2025
An email reportedly sent by Prince Andrew to Jeffrey Epstein in 2011 - in which he is said to have written, "We are in this together" - has been unearthed by The Sun and is being described as a potential "smoking gun." Andrew has consistently denied any wrongdoing.
February 2026
Police arrest Andrew on the King's Sandringham estate on the day of his 66th birthday (February 19) after receiving a complaint that the former Prince had shared confidential material with Epstein. Andrew is released under investigation later that day.
June 2026
Outrage ensues after The National Audit Office releases a report showing Andrew received private income from properties on the Windsor estate while paying only a peppercorn rent on his sprawling Royal Lodge home.
A wider look at royal property arrangements
© Getty ImagesThe report examined dozens of royal residences and uncovered a complex web of leases, subsidies and historic agreements across Crown Estate and Royal Household properties.
Among the findings was confirmation that Prince and Princess Michael of Kent's Kensington Palace apartment is also funded by the King through the Privy Purse. Their accommodation has long attracted public attention after previous controversy surrounding the couple's heavily subsidised rent arrangements.
© Getty ImagesMeanwhile, the Prince and Princess of Wales were shown to pay £307,200 annually for their Windsor residence, Forest Lodge. Before the family moved in, the Crown Estate spent almost £400,000 carrying out repairs and refurbishment works to the property and surrounding buildings.
The Duke and Duchess of Edinburgh were also highlighted in the report. Like Andrew, they have historically been permitted to generate private income through certain subletting arrangements connected to Bagshot Park, their Surrey home.
Fresh questions over Royal Lodge
© UK Press via Getty ImagesDespite no longer living at Royal Lodge, Andrew's property arrangements continue to attract attention following years of controversy surrounding his public role and finances.
The report noted that his lease agreement was unique among those examined because it contained an early surrender clause, potentially entitling him to compensation for vacating the property.
It has been reported that the payout could be worth between £301,967 and £488,342, depending on the condition of the property and the date the lease is officially surrendered. However, any final payment remains uncertain pending an assessment of the estate.
© Getty ImagesAndrew negotiated the lease in 2003 after agreeing to spend £7.5 million renovating Royal Lodge, which reduced his capital premium payment to £1 million alongside the peppercorn rent arrangement.
The Crown Estate welcomed the National Audit Office review, stating that all lease arrangements involving members of the royal family were agreed in line with independent professional advice and open market valuations.
The findings are expected to form part of an upcoming Public Accounts Committee inquiry into royal property arrangements, ensuring questions surrounding transparency, taxpayer value and royal housing privileges remain firmly in the spotlight.
A Palace spokesperson said: "We are grateful to the National Audit Office for this report, which is in line with The Royal Household’s commitment to transparency. We hope that the findings will help correct, clarify or contextualise a number of points regarding Royal properties. 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."
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