Two royal sisters who have lived in Crown properties without paying rent for nearly two decades are now facing the end of that arrangement, as King Charles III orders a formal review of housing perks within the palace system. Princess Beatrice and Princess Eugenie, daughters of Andrew Mountbatten-Windsor, the former Prince Andrew, received word from royal officials that their residences are under scrutiny as part of a broader reassessment of who occupies royal homes.
The monarch has instructed aides to examine how royal properties are allocated, and the York sisters represent the most visible test case of that policy shift. Neither Beatrice nor Eugenie serves as a working royal, yet both have occupied valuable London properties for almost 20 years, according to a report from the National Audit Office, the U.K.’s independent public spending watchdog.
Beatrice resides at St. James’s Palace, while Eugenie lives in a cottage on the grounds of the Kensington Palace estate. Royal officials first reached out to the sisters in 2025, then followed up in early 2026, requesting they begin exploring other options for when they need a base in London. The communication came through intermediaries rather than directly from the king.
William’s Influence on Housing Policy
Prince William’s involvement in the decision is widely acknowledged within palace circles. Sources indicate the heir to the throne believes royal residences should be reserved exclusively for working members of the family, and his hardening view on the matter has shaped the king’s approach.
“Andrew was the warning shot,” one source said. “If a prince can be pushed out of a royal residence, nobody believes the York sisters will be exempt from the changes William wants to make.”
Andrew Mountbatten-Windsor was stripped of his “Prince” style, “His Royal Highness” (HRH) and the Duke of York title in late 2025. He was subsequently evicted from Royal Lodge, the $37 million mansion where he had lived rent-free for years, then arrested on suspicion of misconduct in public office. That investigation has since expanded to include sex crimes, and he has been barred from public royal events following years of scrutiny related to the Jeffrey Epstein scandal.
“Senior royal officials have made it increasingly clear that the accommodation arrangements currently enjoyed by Beatrice and Eugenie are not viewed as a permanent entitlement,” a palace insider told a royal reporter. Officials have emphasized the move is operational rather than punitive, tied to long-term institutional planning.
What Happens to the Properties
Once the princesses depart, Beatrice’s apartment at St. James’s Palace will likely be converted into office space, while Eugenie’s cottage is expected to become accommodation for a senior staff member. The reassignment reflects Charles’s intention to rationalize how Crown properties are used in support of the monarchy’s core functions.
According to sources close to the family, the expectation within the household is that when William becomes king, Beatrice and Eugenie will be required to pay their own way. Both sisters, by all accounts, understand the direction of the institution and recognize their position has changed.
A Plea for Their Father
Even as their own housing situation grows uncertain, the York sisters have been quietly advocating on behalf of their father. Beatrice and Eugenie have pleaded with Charles to allow Andrew to remain at Royal Lodge, though their appeal centers largely on concern for their mother, Sarah Ferguson.
Ferguson and Andrew divorced in 1996 but have continued to live together at Royal Lodge ever since. She is currently battling both breast cancer and skin cancer, and the princesses do not want her displaced during treatment. Royal biographer Ingrid Seward had predicted Andrew would use his daughters as his secret weapon, and that prediction appears to be unfolding.
“The two princesses have spoken to their uncle, asking him to forgive Andrew and for the two brothers to mend fences,” a royal source said. “But it remains to be seen if their requests have been heard.”
The condition of Royal Lodge itself has become another complication. Royal expert Ian Pelham Turner has said the property is in total disrepair, citing dampness, worsening cracks in the brickwork, peeling paint and plaster falling from the walls and ceiling. Andrew, by multiple accounts, does not have the funds to maintain the 19th-century estate.
The cumulative picture, as detailed by multiple royal correspondents, is of a monarchy quietly contracting — pruning the perks, the properties and the personalities that no longer fit a slimmed-down vision of the institution. For Beatrice and Eugenie, the question is no longer whether the rent-free era ends, but when.
