New insights into the royal living arrangements of Princesses Beatrice and Eugenie have emerged from a report by the UK’s National Audit Office (NAO), highlighting financial practices within the royal family related to their residences. This report was prompted by recent controversies involving their father, Andrew Mountbatten-Windsor, also known as the former Prince Andrew, particularly concerning his connections to the late Jeffrey Epstein.
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The financial details reveal that Princess Beatrice and Princess Eugenie reside in royal apartments without paying rent. The arrangement, originally established by their grandmother, Queen Elizabeth II, has continued under the oversight of King Charles III, who funds these living situations through the Privy Purse, derived from the Duchy of Lancaster revenues.
Andrew Mountbatten-Windsor had recently been scrutinised for charging rent on three out of eight properties on his Royal Lodge estate, where he lived until February of this year. Despite only recently being ordered to vacate the estate after losing his royal titles and honours in 2025, he had reportedly lived there since 2003 under arrangements that saw him pay only a minimal “peppercorn rent.” This financial structure was a result of significant refurbishment investments that he allegedly made prior to moving in.
The NAO’s report sheds light on Andrew’s questionable financial dealings, indicating that while he charged his staff rent for their residences on the estate, his financial contributions towards his own living situation were notably low. According to the findings, any financial gain from his rental agreements did not benefit him excessively, as these arrangements were meant to cover basic maintenance costs.
Furthermore, Andrew may be entitled to compensation for vacating the Royal Lodge early, estimated at around $400,000 (£300,000). However, potential costs to renovate the property may offset this amount, leaving uncertainty regarding his financial outcome.
The report also clarifies the living conditions of Princess Beatrice and Princess Eugenie, who both maintain residences outside of their royal homes. Beatrice occupies an apartment at St. James’s Palace, while Eugenie resides in Ivy Cottage at Kensington Palace. While these apartments serve as secondary residences, their lack of rental obligations raises questions, particularly since both princesses have independent careers and are not performing official royal duties.
Royal sources indicate that arrangements concerning living accommodations undergo regular review, which may not quell public scrutiny. Despite their ties to the royal family, the princesses’ independent lifestyles and marital commitments lead to speculation on the appropriateness of their rent-free status when they do not appear to be engaged in royal responsibilities.
Princess Beatrice lives in the Cotswolds with her husband, Edoardo Mapelli Mozzi, and their two children. Conversely, Princess Eugenie, who is expecting her third child, divides her time between homes in London and Portugal with her family.
The financial practices of the royal family have naturally attracted attention, especially as the NAO indicates that there are currently eleven members of the royal family living in properties at no cost due to their duties. These revelations were made amid broader discussions about accountability and transparency regarding public funds linked to royal living arrangements.
In response to these findings, a spokesperson for Buckingham Palace stated that the organisation values transparency regarding property arrangements, asserting that the aim is to provide clarity on the complex dynamics of royal residences. They emphasised that such arrangements vary considerably based on location, tenants, and purpose, stressing that ongoing evaluations are integral to managing the royal estate effectively.
As public interest into the workings of the monarchy continues, the implications of this report may lead to further discussions and scrutiny regarding how the royal family balances tradition with the demands of modern transparency and accountability.