Princesses Beatrice and Eugenie have been living rent-free in royal palace apartments, with the King covering the cost through his private income from the Duchy of Lancaster, according to a new investigation by the National Audit Office (NAO). The sisters, who are non-working royals, were previously understood to pay market rent for their homes — Beatrice at St James’ Palace and Eugenie at Ivy Cottage in Kensington Palace.
The NAO report found that the Royal Household typically adjusts rents to 60% of open market value for non-working family members, citing security restrictions. However, for several years, the York sisters’ rents were based on outdated valuations: Eugenie’s on a 2018 valuation and Beatrice’s on a 2020 valuation. Current rates are now 64% and 68% of 2026 valuations respectively, though the exact amounts paid by the King remain private.
The arrangement for the Privy Purse to pay the rent was reportedly put in place by the late Queen, with Eugenie funding her own renovations. Former Liberal Democrat minister Norman Baker criticised the arrangement, stating: “There’s no way that non-working members of the royal family should be subsidised by the Duchy of Lancaster. The royal family is yet again taking the public for a complete ride.” He added that less profit has been passed to the Treasury as a result.
Beatrice, 37, works as Vice President of Strategic Partnerships at software firm Afiniti and is married to property developer Edoardo Mapelli Mozzi, with whom she owns a £3.5 million Cotswolds home. Eugenie, 36, is a director at Mayfair art gallery Hauser and Wirth and is expecting her third child with husband Jack Brooksbank, who works in sales for a luxury development in Portugal.
The sisters faced scrutiny earlier this year after their names appeared in the Jeffrey Epstein files, suggesting their mother Sarah Ferguson took them to see the convicted paedophile after his release. Meanwhile, their father, Prince Andrew, reportedly sub-let three cottages at Royal Lodge while paying only a peppercorn rent for his own lease.
