PAC attacks modest royal arrangements over rent rates
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A parliamentary report has criticised below-market rents for four non-working members of the Royal Family, even though the King covers the shortfall from the Privy Purse and the Crown Estate says it follows legal valuation rules.
The Public Accounts Committee (PAC) has criticised the Crown Estate for charging reduced rents to four non-working members of the Royal Family, noting that the shortfall is paid by the King from the Privy Purse. The report identifies Princess Eugenie, Princess Beatrice and Prince and Princess Michael of Kent as the individuals receiving the discounted rates.
According to the PAC, the Crown Estate is required by law to achieve the best possible price for its 2,475 properties, including those occupied by royals, and to set rents at 60 % of market value. The committee says this policy was not consistently applied for many years, leading to “inconsistencies” in the amounts charged and prompting fresh scrutiny of long-standing arrangements.
Estimates suggest that Eugenie’s three-bedroom cottage on Kensington Palace grounds would fetch £10,000-£15,000 per month on the open market, while the King pays roughly £6,000-£9,000. For Beatrice, a four-bedroom apartment in St James’s Palace is valued at £15,000-£20,000 per month, with the Privy Purse covering up to £13,600. The Kent couple’s five-bedroom Kensington Palace apartment is reported to have been rented for £120,000 a year after a previous low-rent scandal.
“There can be no earthly justification for allowing well-off royals to benefit from substantially reduced rents. It is just another example of the arrogant sense of royal entitlement that they breezily expect something for nothing,” said former Liberal Democrat MP Norman Baker, a vocal critic of royal finances.
The PAC also highlighted sub-letting practices involving the late Prince Andrew’s former lease at Royal Lodge, where three cottages were sublet at below-market rates, generating about £2,000 a month for him. The committee recommends that future leases include a standard clause prohibiting sub-letting without prior permission and that the Royal Household implement consistent rent-setting policies with regular market reviews.
A Buckingham Palace spokesperson thanked the PAC for its work and said the recommendations would be considered as part of the palace’s commitment to continuous improvement.