Princesses Beatrice and Eugenie do not pay for their living accommodations in royal palaces, as the King covers the expenses, an investigation by the National Audit Office has revealed. Previously, it was believed that the sisters paid market rent for their London residences, with Beatrice residing in an apartment at St James’ Palace and Eugenie in a cottage at Kensington Palace.
The report highlighted that the non-working royals, Beatrice and Eugenie, have their rent costs covered by the Privy Purse, which is funded by the King’s private income from the Duchy of Lancaster. The rental rates for the properties are adjusted to about 60% of the open market value for non-working members of the Royal Family residing in occupied royal palaces.
However, the investigation found that the adjusted rents for the sisters were based on outdated open market valuations for several years. Eugenie’s rent for Ivy Cottage in Kensington Palace was calculated at 50% of the 2018 open market value in 2020, increasing to 55-63% in the following years, while Beatrice’s rent for her St James’s Palace apartment ranged from 60-68% of the 2020 market value.
Currently, Eugenie’s rent is set at 64% of the 2026 open market valuation, and Beatrice’s rent is at 68% of the same value. The specific amounts paid by the King for their accommodations were not disclosed by the NAO.
The arrangement for the Privy Purse to cover the sisters’ rent was established by the late Queen, with Eugenie independently funding renovations to her cottage in Kensington Palace. Norman Baker, an expert on royal finances, criticized the subsidy, stating that non-working royals should not be financially supported by the Duchy of Lancaster, impacting the Treasury’s earnings.