The Public Accounts Committee has today announced it will launch an inquiry into the royal leases of the Crown Estate, after recent revelations about Andrew Mountbatten-Windsor’s lenient arrangement for Royal Lodge.
At the end of October, it emerged that Andrew paid around £8.5 million in total (including agreed refurbishments) for a 75-year lease of the Grade-II listed Royal Lodge in 2003 – but since then has paid ‘one peppercorn’ of rent ‘if demanded’ per year.
MPs called for answers over this deal, and so the public spending watchdog, the Public Accounts Committee (PAC), requested information from the Crown Estate and the Treasury about current property leases to members of the Royal Family.
It today published responses to these detailed questions, about which Chair of the Committee, Geoffrey Clifton-Brown, said: ‘Having reflected on what we have received, the information provided clearly forms the basis for an inquiry.
‘The National Audit Office supports the scrutiny function of this Committee. We now await the conclusions the NAO will draw from this information, and plan to hold an inquiry based on the resulting evidence base in the new year.’
The inquiry has requested the Estate’s accounts dating back to 2005 for analysis.
Historic note: The Crown Estate is a collection of lands and holdings in the UK which officially belong to the British Monarch in right of the Crown – the Monarch does not own it privately, but looks after it as Head of State.
They are not involved in its management (it is run by a board), and the Estate is formally accountable to the Parliament as per the Sovereign Grant Act of 2011: the Monarch gives up all claim to the profits of the Crown Estate, in return for the Sovereign Grant, which covers all costs of engagements, staff, travel and palace upkeep for official purposes only. The amount of money in the grant is calculated based on the profits of the Crown Estate.
The accounts are audited by the National Audit Office and laid before Parliament for public scrutiny.
Documents shared between the Chair of the PAC and the Estate show responses to questions about these arrangements, and share that Andrew – who was kicked out of the property formerly inhabited by the Queen Mother – would be unlikely to receive any compensation for his eviction, given the property needs extensive work.
A visit to the mansion confirmed its state in mid-November.
‘Our initial assessment is that while the extent of the end-of-tenancy dilapidations and repairs required are not out of keeping with a tenancy of this duration,’ the document reads, ‘they will mean in all likelihood that Andrew Mountbatten-Windsor will not be owed any compensation for early surrender of the lease… once dilapidations are taken into account.’
It is understood that the former Prince will move to a house near Sandringham, but has 12 months, from the surrendering of the lease, to leave.
The former Duke continues to deny the allegations made against him in relation to his friendship with convicted sex offender, Jeffrey Epstein, and alleged behaviour with the then-underage Virginia Guiffre.
The exchange of documents also revealed details of current leases for The Prince and Princess of Wales, The Duke and Duchess of Edinburgh, and Princess Alexandra, who all lease property from the Crown Estate.
William and Catherine, who moved into Forest Lodge in late October, hold a’ 20-year non-assignable lease with The Crown Estate for Forest Lodge, commencing 5 July 2025′ and pay ‘open market rent’.
‘Negotiations were conducted on an arm’s length basis to ensure appropriate market terms were agreed,’ the Crown Estate said.
The committee will consider what witnesses to call to give evidence once it has considered all the written submissions, and – though it is unlikely – it has the right to call upon royal witnesses.
