Royal Residences Under Scrutiny as New Report Reveals Rent Payments
A recent reports the National Audit Office (NAO) has brought to light that a prominent royal couple continues to reside in a Kensington Palace apartment without personally covering the rent, a situation that contrasts with previous assurances from the Palace.
King Charles Covers Rent for Lesser-Known Royals
The comprehensive review of The Crown Estate’s residential property arrangements has uncovered that King Charles is currently subsidizing the living costs for several members of the Royal Family. This includes Princess Beatrice and Princess Eugenie, as well as a less publicly visible couple: Prince Michael of Kent and Princess Michael of Kent.
Prince Michael and his wife have occupied a spacious apartment within Kensington Palace since 1978, when it was initially allocated to them by the late Queen Elizabeth II. The arrangement has drawn attention over the years, particularly after it emerged in 2002 that the couple was paying a nominal rent of just £69 per week, despite not being actively engaged in official royal duties. This led to a public commitment in 2008 from Buckingham Palace that the couple would be required to pay the full market rate for their accommodation beginning in 2010.
This directive followed scrutiny from MPs on the Public Accounts Committee, who advocated for the full commercial rent to be applied. At the time, the late Queen Elizabeth II reportedly covered the substantial monthly cost, estimated at £10,000, until the new rental terms were set to take effect.
Current Rent Arrangements Questioned
However, the latest NAO report indicates that the responsibility for the couple’s rent has now shifted to King Charles, who is reportedly paying from the Privy Purse. This development raises questions about the earlier statements from royal courtiers asserting that the couple would be self-sufficient in covering their housing expenses.
It is understood that the late Queen Elizabeth II had privately agreed to continue paying the couple’s rent, and that King Charles has chosen to uphold this arrangement during his reign. While the precise current rental figure remains undisclosed, the report highlights a significant increase. Between 2020 and 2026, rents are projected to rise by 34%, and currently stand at 63% of a 2026 open-market valuation.
The report clarifies that these rental payments are directed to the Royal Household, which utilizes funds from the Privy Purse—derived from the monarch’s private Duchy of Lancaster income—to support the King and working members of the Royal Family in their official capacities.
Palace Welcomes Transparency
A spokesperson for the Palace ed gratitude for the NAO’s report, stating, “We are grateful to the National Audit Office for this report, which is in line with The Royal Household’s commitment to transparency. We hope that the findings will help correct, clarify or contextualise a number of points regarding Royal properties.” The spokesperson further added, “As the report notes, arrangements for properties managed by the Royal Household vary based on a number of factors to ensure residences are filled appropriately, depending on their location, tenants and purpose.”
A representative for The Crown Estate commented, “The Crown Estate welcomes the National Audit Office’s review which confirms its leases with members of the Royal Family were agreed in line with independent, professional advice and open market valuations. We look forward to discussing the report further with the Public Accounts Committee in due course.”
