Princesses Beatrice and Eugenie do not personally cover the cost of their accommodation within royal palaces, as it is covered by the King. Initially believed to pay market rent for their London residences, the sisters are actually not charged anything, with the expenses being handled by the Privy Purse, sourced from the King’s private income from the Duchy of Lancaster.
The National Audit Office’s recent investigation into the Royal Family’s property arrangements revealed that non-working royals residing in occupied royal palaces typically pay around 60% of the open market value for their accommodations. However, outdated valuations were used to determine the rental rates for Eugenie and Beatrice until recently.
The current rental rates are based on the 2026 open market valuations, with Eugenie paying 64% and Beatrice 68%. The specifics of the King’s payments for their accommodations remain undisclosed for privacy reasons. The arrangement for the Privy Purse to cover the sisters’ rent was established by the late Queen, with Eugenie funding renovations to her cottage independently.
Critics, including former Liberal Democrat minister Norman Baker, have raised concerns about non-working royals benefiting from subsidized accommodations funded by the Duchy of Lancaster. The report also highlights similar arrangements for other non-working royals, such as Prince and Princess Michael of Kent, whose rent is also covered by the King.
The NAO report sheds light on various lease and rent agreements within the Royal Family, emphasizing the need for transparency and potential reforms in royal funding. As discussions unfold, the findings will likely prompt further scrutiny and inquiries into royal property arrangements.
