Andrew Mountbatten-Windsor, formerly known as Prince Andrew, collected up to £2,000 per month by subletting three cottages at his former residence, Royal Lodge, even though he was not required to pay rent himself, according to a report by the UK's public spending watchdog.

The Public Accounts Committee (PAC), which investigated the lease arrangements, found that the subletting income went directly to Mountbatten-Windsor rather than to his landlord, the Crown Estate. The committee noted that the cottages were not always rented out, so the total income over his more than 20-year occupancy cannot be determined.

Recommendations to Prevent Future Subletting

MPs on the committee have recommended that future leases should prohibit subletting unless explicitly agreed upon with the landlord. This comes after the Crown Estate admitted it had no oversight over how much Mountbatten-Windsor charged for the cottages, as subletting was permitted under the terms of his lease.

Mountbatten-Windsor took on a 75-year lease for Royal Lodge in 2003 and paid approximately £7.5 million towards renovation and other charges, which exempted him from paying rent. However, it later emerged that he had been intermittently subletting the three cottages, reportedly for staff at below-market rates, while keeping the income.

Departure and Financial Settlement

Mountbatten-Windsor left Royal Lodge in February following renewed scrutiny of his connections to the disgraced US financier Jeffrey Epstein. He has consistently denied any wrongdoing in relation to Epstein.

The PAC report also detailed the financial settlement upon his departure. Mountbatten-Windsor was due a payment of about £300,000 for early surrender of his lease, but a repair bill of £1.8 million for dilapidations meant that the Crown Estate was owed £1.5 million. That sum was paid by King Charles on his brother's behalf.

Concerns Over Non-Working Royals' Rent

The watchdog also raised concerns about the rent charged to non-working royals who occupy accommodation in three royal properties. These are believed to be Mountbatten-Windsor's daughters, Princess Beatrice and Princess Eugenie, and Prince and Princess Michael of Kent.

A National Audit Office report earlier this year revealed that Princess Beatrice and Princess Eugenie do not pay anything themselves for their accommodation at St James's Palace and Kensington Palace respectively. The King pays their rent to the Royal Household from his private income.

MPs questioned whether the rent levels for such properties are based on up-to-date valuations and recommended a more consistent approach to ensure value for money.

Crown Estate's Regional Spread and Costs

The committee also criticised the Crown Estate for concentrating too much of its urban property portfolio in London and the South East, calling for a wider regional spread. Additionally, MPs warned about the significant increase in the Crown Estate's administration costs, which have risen by 129% since 2020-21. Over the same period, the salary of chief executive Dan Labbad increased by 106%, with his pay package for 2025-26 valued at £2.3 million.

In response, a Crown Estate spokeswoman said: "The Public Accounts Committee report is an important part of our accountability to Parliament. We are considering its findings and recommendations and will respond to the Committee in due course."