The National Audit Office disclosed that Andrew Mountbatten‑Windsor earned rent from subletting three cottages on Royal Lodge, the Windsor estate where he lived rent‑free. The former prince paid a nominal “peppercorn” lease—effectively zero pounds—after a £1 million lease fee in 2003 and a £7.5 million refurbishment in 2005. The cottages have been vacant since April, and the audit could not confirm the rental rates.

Royal Lodge’s lease, like those of several other Crown Estate residences, permits occupants to sublet and generate income with royal consent. Mountbatten‑Windsor, stripped of titles and removed from the property in February after renewed Epstein‑related scandals, now resides at Sandringham, a privately funded king’s estate. The revelation adds pressure on the monarchy to justify tax‑free housing privileges for senior royals.

The audit’s findings expose a potential conflict between public‑funded royal assets and private profit, raising questions for investors monitoring sovereign‑linked property portfolios. With the Crown Estate reporting £3 billion of annual revenue, any perception of misuse could affect its market reputation and the valuation of related REITs. The report underscores the need for stricter oversight of royal leases.