The scandal sparked by Prince Andrew’s nearly rent-free lease of his lavish residence is escalating and now threatens to implicate other members of the British royal family. The UK Parliament has launched an official investigation into all lease agreements involving properties owned by the Crown. Public outrage over the living arrangements of King Charles III’s brother at Royal Lodge has brought close scrutiny to one of the monarchy’s long-standing privileges: for decades, royals have occupied palace residences either free of charge or for a nominal sum, as a royal favor. Today, some of these properties remain under Crown ownership, while others are managed by the state—meaning taxpayers bear the cost of their upkeep.
The ‘Pandora’s Box’ Case
The parliamentary probe—already dubbed ‘Pandora’s Box’ for its unpredictable consequences—will also examine the rental agreements for the new family residence of the Prince and Princess of Wales, Forest Lodge in Windsor Great Park. The estate of the Duke and Duchess of Edinburgh in Bagshot Park, Surrey, will also come under close scrutiny. The investigation by the Public Accounts Committee was launched after the Crown itself prepared an unprecedented report on royal property for the British monarchy.
The document revealed that Royal Lodge, where Prince Andrew has lived for decades, is in a state of disrepair. This could cost him the £500,000 compensation the King set for his early departure. Meanwhile, the report notes that William and Kate are paying a “market” rent for their new residence.
A token fee for luxury
As for the Duke and Duchess of Edinburgh, Edward and Sophie, they agreed back in 2007 to make an advance payment of five million pounds in order to live in their Bagshot Park palace rent-free. Growing questions have been raised in the public about why Prince Edward and his wife occupy a 120-room residence, while the Crown Estate could lease it on the open market and generate income for the treasury. The Duke and Duchess secured a 150-year lease after a one-time payment. This agreement allows the Duke of Edinburgh to pay a “nominal rent,” the amount of which is undisclosed and has historically been set for members of the royal family.
The report also mentions other royal relatives. For example, Princess Alexandra, Queen Elizabeth II’s cousin, pays just £225 a month for her residence in Richmond Park, south London.
The Prince Andrew scandal
Prince Andrew is legally entitled to remain at the Royal Lodge until October next year, though he is expected to move out much sooner. The middle son of Queen Elizabeth II reportedly agreed to pay a ‘peppercorn rent’—the English term for a nominal sum—for the 30-room residence he has shared for the past twenty years with his ex-wife Sarah Ferguson. This revelation came as a shock to the British public and sparked a major scandal.
The former Duke of York was stripped of all royal titles, including ‘Prince,’ after it emerged he had lied in a BBC interview about ending his ties with convicted pedophile Jeffrey Epstein. It was then that details of his tenancy agreement came to light, with the king pressuring Andrew to leave the mansion as soon as possible. Each new detail uncovered about his contract proved increasingly alarming. The 75-year lease, signed in 2003, required him to pay £1 million up front and invest £7.5 million in renovations before the token ‘peppercorn rent’ came into effect.
Protecting taxpayers’ interests
The parliamentary investigation, however, does not stop there. The committee, which includes representatives from all parties, plans to examine all the details of the Crown Estate’s leasing arrangements to determine whether taxpayers’ interests have been adequately protected. Private residences such as Highgrove House and Gatcombe Park, where Princess Anne lives, as well as so-called “grace and favor” homes granted by the King, will not be included in the inquiry. However, all other royal housing arrangements for the royals will be made public.
By comparison, the Prince and Princess of Wales have a non-transferable 20-year market-rate lease. William has said he hopes this will become their permanent home. Forest Lodge is valued at about £16 million, with monthly rent estimated between £32,000 and £100,000. Buckingham Palace has not yet commented on the investigation.
For reference, the Crown Estate is the aggregate of lands and holdings in the United Kingdom belonging to the British monarch as sovereign, not as a private individual. These real estate assets are managed by an independent commercial organization. The Crown Estate’s revenues are not the monarch’s personal property, but are paid to His Majesty’s Treasury. In return, the royal family receives an annual “Sovereign Grant” to fund its official duties.
