A sweeping reassessment of royal property allocation is underway, and Princess Beatrice and Princess Eugenie are squarely in its crosshairs. King Charles has ordered a formal review of the rent-free living arrangements the sisters have enjoyed for nearly two decades, a decision reported in June 2026, that could strip the daughters of Andrew Mountbatten-Windsor of their coveted London residences.
The move comes as palace aides confirmed that royal officials have been in contact with the princesses since 2025, with follow-up communications sent around March 2026 urging them to begin exploring other options for a London base. Neither sister qualifies as a working royal, yet both have occupied prime royal real estate without paying rent for almost 20 years, according to a report from the National Audit Office, the U.K.’s independent public spending watchdog.
Princess Beatrice currently resides at St. James’s Palace, while Princess Eugenie lives in a cottage on the Kensington Palace estate. Once they vacate, palace sources say Beatrice’s apartment will be converted into office space and Eugenie’s cottage will house a senior member of staff.
William’s Hardening View
The heir to the throne’s influence on the decision is unmistakable. Prince William has made clear he wants such privileges reserved strictly for working royals, sources say, and his vision for a contracted monarchy is reshaping how royal properties are distributed.
“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, the former Prince Andrew, was stripped of the “Prince” style, “His Royal Highness” (HRH) and the Duke of York title in late 2025. He was then evicted from Royal Lodge, the $37 million mansion where he had lived rent-free for years. He was later arrested on suspicion of misconduct in public office, an investigation that has since expanded to include sex crimes. He has been at the center of public scrutiny since the Jeffrey Epstein scandal, and he is no longer permitted at public royal events.
According to sources close to the family, William’s reasoning is straightforward: royal properties exist to support the institution, and those not working for the institution have little claim to live in them for free. Beatrice and Eugenie, by all accounts, understand the math. The expectation inside the household is that when William becomes king, the sisters will be required to pay their own way.
A Shift in How Palaces Are Used
King Charles has already instructed aides to review the use of royal residences by members of the family, and the implications stretch well beyond the two sisters’ apartments. The shift sends a message about who is expected to occupy royal properties in the years ahead.
“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 stressed that the move is not punitive but operational — practical housekeeping tied to the king’s long-term plans for the institution.
Still, no one inside the palace is pretending the symbolism is small.
The Sisters Plead for Their Father
Even as their own housing future tightens, Beatrice and Eugenie have been quietly lobbying their uncle on another front — their father. The sisters have pleaded with Charles to allow Andrew to remain at Royal Lodge, though the appeal is rooted less in concern for him than for their mother, Sarah Ferguson.
Ferguson and Andrew divorced in 1996 but have lived together at Royal Lodge ever since. She is 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 now appears to be playing out.
“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.”
Their father’s situation, meanwhile, has only grown more precarious. Royal expert Ian Pelham Turner has said Royal Lodge 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 property.
The cumulative picture 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.
