Public Accounts Committee Urges Ban on Royal Sub-letting

The Public Accounts Committee (PAC) has recommended that the Crown Estate prohibit sub-letting as a standard lease provision following an inquiry into the Royal Lodge estate. The investigation revealed that Andrew Mountbatten-Windsor earned undisclosed income, reaching over £2,000 per month in late 2021, by sub-letting three cottages on the grounds while paying a peppercorn rent for more than two decades.

Following the surrender of Mountbatten-Windsor's lease last month, King Charles III privately paid £1.5 million to the Crown Estate for the repair and restoration of the property, offsetting a £300,000 lease surrender payment. The PAC also urged the Royal Household to implement consistent rent-setting policies after finding that Princess Beatrice and Princess Eugenie paid rents based on outdated valuations.

Beyond the Royal Lodge case, the committee criticized the Crown Estate for a 129% increase in administration costs since 2020-21, including a £2.3 million pay package for CEO Dan Labbad. MPs further questioned the estate's heavy property concentration in London and the south east, as well as the value collapse of The Gate in Newcastle, which dropped from £60 million to £15 million. Both the Crown Estate and the Royal Household have acknowledged the report and stated they are considering the recommendations.