King Charles could be paying more than £278,000 per year to cover the rents of Princesses Beatrice and Eugenie's accommodation in royal palaces, a valuer has estimated. Both daughters of Prince Andrew are non-working royals but maintain residences in St James's Palace and Kensington Palace, according to a new audit published by the National Audit Office (NAO) on Friday.
The NAO report said the rents were discounted to around 60 per cent of open market prices because the Royal Household properties require tenants with security clearance. It did not reveal the exact figures the King is paying. The report also found that for a number of years, these adjusted rents were based on out-of-date open market valuations.
Princess Beatrice has a property in St James's Palace, and Princess Eugenie has Ivy Cottage at Kensington Palace. Both are covered by the privy purse, which is King Charles's private money, according to the report. Property buying agent Robin Edwards of Curetons told The Independent that the “prestigious” locations and associations mean they would attract “significant premiums”. When adjusted for the discount, it is estimated this could equal more than £278,000 in rent per year.
Mr Edwards estimated open market rents for a property comparable to Ivy Cottage could range from £10,000 to £15,000 per month. The NAO report shows Princess Eugenie's rent is currently at 64 per cent of the 2026 open market valuation, suggesting the King could be paying up to around £9,600 per month. For Princess Beatrice's apartment in St James's Palace, Mr Edwards gave an open market valuation of £15,000 to £20,000 per month. The report shows her rent is at 68 per cent of market value, suggesting the King could be paying up to £13,600 per month.
Former Liberal Democrat minister Norman Baker, a long-time critic of royal finances, said there is “no way that non-working members of the royal family should be subsidised by the Duchy of Lancaster”. He added: “The royal family is yet again taking the public for a complete ride.” Up until this year, Eugenie's rent was based on a 2018 valuation and Beatrice's on a 2020 valuation. Both rents are paid to the Royal Household entirely by Charles out of the Privy Purse, which is made up of his Duchy of Lancaster income and other private funds.
