Princesses Beatrice and Eugenie do not pay for their accommodation inside royal palaces; the cost is covered by the King, according to a recent disclosure. Previously thought to pay market rent for their London residences, the sisters’ living expenses are now funded by the Privy Purse, sourced from the King’s private income from the Duchy of Lancaster.
A study by the National Audit Office revealed that the adjusted rents for properties rented out by the Royal Household in occupied royal palaces are typically set at 60% of the open market value for non-working members of the Royal Family. However, the NAO found that the York sisters’ adjusted rents were based on outdated market valuations for several years.
Eugenie’s rent for Ivy Cottage in Kensington Palace was 50% of the 2018 market value in 2020-2021 and has since increased to 64% of the 2026 valuation. Similarly, Beatrice’s rent for her apartment in St James’s Palace ranged from 60% to 68% of the 2020 market value from 2020-2025 and is currently set at 68% of the 2026 valuation.
Details of the exact amounts that the King pays for Eugenie and Beatrice’s rent remain undisclosed by the NAO, citing privacy reasons. The arrangement for the Privy Purse to cover the sisters’ rent was established by the late Queen, with Eugenie financing renovations to her cottage at Kensington Palace herself.
Critics, including former Liberal Democrat minister Norman Baker, have raised concerns about non-working royals receiving subsidies from the Duchy of Lancaster, emphasizing the need for greater transparency and oversight into royal finances. Beatrice and Eugenie, despite being non-working royals, hold positions in the private sector and have personal residences outside of their royal accommodations.
The report also sheds light on similar arrangements for other non-working royals, such as Prince and Princess Michael of Kent, whose Kensington Palace apartment rent is also covered by the King. The NAO’s findings will inform the Public Accounts Committee’s investigation into royal property arrangements, highlighting varying rent and lease agreements based on different factors and property management entities.
Both Buckingham Palace and The Crown Estate have responded positively to the NAO report, expressing their commitment to transparency and adherence to independent valuations in lease agreements with members of the Royal Family. However, calls for a comprehensive parliamentary inquiry into royal funding persist, underscoring the need for reform and increased accountability within the monarchy.