Prince William is attempting to “draw a line under the past” with his plan to cut off rent-free royals when he takes the throne, according to royal experts.
William, 43, is reportedly considering barring royal properties from being sub-let as well as stopping non-working royals from enjoying rent-free accommodation.
A source close to the Prince of Wales told The Sunday Times he wants to “do things differently” in the wake of a National Audit Office (NAO) report into royal property arrangements which has provoked fresh public outrage.
It has emerged that the King’s brother Andrew Mountbatten-Windsor has been able to earn rental income, estimated to be as much as £180,000 a year, from renting out cottages at the Royal Lodge estate despite only paying a ‘peppercorn’ rate for his own 30-room mansion.
His daughters, princesses Eugenie and Beatrice, have also been able to live rent-free in their respective homes within royal palaces for more than 15 years, with the cost met directly from the Privy Purse – the monarch’s private income derived from his Duchy of Lancaster estate.
Prince William and his uncle Andrew Mountbatten-Windsor in 2025 (Photo: Max Mumby/Indigo/Getty)
The princesses, who are both non-working royals, have spent recent months being buffeted by the fall-out from their parents’ disgrace in the wake of the stream of revelations related to the sex offender Jeffrey Epstein.
The ex-Duke of York has retreated to the residence on the Sandringham Estate provided to him by his brother while his ex-wife, Sarah Ferguson, is keeping a low profile abroad.
The former Liberal Democrat minister Norman Baker said it was “outrageous” that Andrew had been able to gain rental income while at Windsor.
He should now “pay the money back to the Crown Estate”, even if he complied with the terms of the lease said Baker, author of Royal Mint: National Debt.
‘This sort of thing was expected from William’
While it is unclear if King Charles will take any further action immediately, his son appears to be keen to “set his stall out early” for his future reign, said royal expert Richard Fitzwilliams.
“He [Prince William] is doing it as tactfully as possible,” he told The i Paper.
“The National Audit Office report got a lot of publicity, but no one had actually done anything wrong, including Andrew Mountbatten-Windsor who was entitled under the lease to let those properties.
“The problem, that I think William is attempting to deal with, is a lot of these things began 20 or 30 years ago or even more, and this is the way things were handled.
“Remember that each monarch inhabits or inherits the throne at a different time and the optics, during those various periods, obviously alter as society changes.”
A report by the National Audit Office has revealed the King is paying the rent on two royal London properties used by Princesses Eugenie, right, and Beatrice (Photo: Chris Jackson/Getty Images for Ascot Racecourse)
“What was acceptable X years ago, or done X years ago, can’t be done now or shouldn’t be done now.
“William clearly wants to emphasise that things will alter when he is King, conscious of the fact that a lot is coming to light now which isn’t appropriate in our time.”
William and his wife Catherine have also made public some of their own living arrangements.
The couple pay £307,500 a year in rent on their grade II listed mansion in Windsor, although the Crown Estate, the property company owned by the royal family, paid out almost £400,000 for renovations in 2025.
Fitzwilliams said he believes such arrangements are “what should and will happen in the future with royal properties.”
“What William is doing is drawing a line under the past and I think it’s very sensible,” he added.
Beatrice and Eugenie rent ‘a matter for the King’
Fitzwilliams added that he believes William- who has increasingly talked of the need for “change” in the British monarchy – will be looking at further reforms in the future, especially as scrutiny increases.
An inquiry into royal finances by parliament’s public accounts committee is expected to present its findings in the summer.
The princesses attended Peter Phillips’ wedding with their husbands Edoardo Mapelli Mozzi and Jack Brooksbank, making their first appearance since it emerged the King is paying rent on their London homes (Photo by Samir Hussein/WireImage)
“We will see much more of a lot of this – but it’s far from clear how it’s going to play out,” Fitzwilliams added.
Andrew remains the subject of a wide-ranging police investigation following fresh revelations in the Epstein files. He strongly denies any wrongdoing.
With more material potentially set to enter the public domain, Fitzwilliams said it remains a question for King Charles as to whether he should take action by ending favourable treatment for Beatrice and Eugenie immediately.
He added: “They aren’t paying anything and people will think that is excessive as they are not working royals.
“But it’s up to the King if he wants to fund it, it’s entirely his right.”