The Crown Estate has confirmed that the Duke of York, Andrew Mountbatten-Windsor, is not expected to receive any financial compensation for surrendering his long-term lease on Royal Lodge early, prompting a parliamentary inquiry into the management of royal property deals.
Parliamentary Probe into Royal Property Deals
The Public Accounts Committee (PAC) is to launch a formal investigation into the Crown Estate and its leasing of properties to members of the royal family. The inquiry, set for the new year, follows detailed questions raised over the lease arrangements for Royal Lodge, the 30-room Windsor mansion occupied by the Duke of York.
Committee chair Geoffrey Clifton-Brown stated that information provided by the Crown Estate and the Treasury clearly formed a basis for an inquiry, which will examine the value for money to taxpayers. The committee will decide which witnesses to call for evidence after reviewing all written submissions.
Details of the Royal Lodge Agreement
In a briefing to MPs, the Crown Estate – an independent commercial business – detailed that the Duke is unlikely to be owed compensation due to the significant repair work needed on the property. Had no repairs been required, he would have been entitled to £488,342.21 for ending the tenancy on 30 October 2026. Instead, he gave the minimum 12 months' notice to surrender the lease on 30 October this year.
Andrew Mountbatten-Windsor originally took on the 75-year lease for Royal Lodge and its eight cottages in 2003 following the death of the Queen Mother. He paid a £1 million premium plus £7.5 million upfront for refurbishment, agreeing to a 'peppercorn rent (if demanded)'. The Crown Estate stated the terms were independently reviewed and deemed "fair, reasonable and in line with market practice".
Other Royal Homes Under Scrutiny
The inquiry will also scrutinise leases for other royal residences. The Crown Estate revealed that the Prince and Princess of Wales hold a 20-year non-assignable lease on their new home, Forest Lodge, and are paying an "open market rent". Negotiations were conducted "on an arm's length basis", though no specific financial details were disclosed.
Information was also provided on the Duke and Duchess of Edinburgh's homes, Bagshot Park and Thatched House Lodge in Richmond Park. The PAC's investigation will assess whether all such deals represent prudent use of public assets.
While the committee could theoretically summon the Duke of York to give evidence, there is no modern precedent for a royal family member appearing in person before a parliamentary committee, and it lacks the power to compel his attendance. The Duke is expected to move into a private property on the King's Sandringham estate in the new year.
