EXCLUSIVE: How Andrew Windsor's Princess Daughters Beatrice and Eugenie Lived the High Life Thanks to His 'Royal Rental Scam'

Princesses Beatrice and Eugenie are under fire after a government report revealed neither has personally paid rent on royal residences for years, with the costs instead covered through arrangements funded by the monarch, despite both women no longer carrying out official royal duties.

RadarOnline.com can reveal Beatrice, 37, and Eugenie, 36, have spent much of their adult lives living in prestigious royal properties, according to a National Audit Office report examining housing arrangements involving members of the Royal Family.

The findings were published following questions over property deals linked to their disgraced father, Andrew Windsor, 66, whose controversial Royal Lodge lease prompted wider examination of royal residences.

The report found rent for the sisters' homes has been paid by King Charles III, 77, through private funds, continuing an arrangement established during the reign of Queen Elizabeth II, who was said to have been particularly close to her granddaughters.

Former Liberal Democrat minister Norman Baker ranted about the findings: "The whole thing is outrageous. If you look at Andrew, this is adding insult to injury.

"It shows an absolute total contempt for the taxpayer. The money should have gone to the Crown Estate, not into (his) pockets."

Speaking specifically about the princesses, Baker added: "There's no way that non-working members of the Royal Family should be subsidized by the Duchy of Lancaster. The Royal Family is yet again taking the public for a complete ride."

The report revealed Eugenie moved into Ivy Cottage on the Kensington Palace estate in 2018 after previously living at St James's Palace. She now divides her time between London and a reported $4.8million home in Portugal.

Beatrice remained at an apartment in St James' Palace, where she lives with her husband, property developer Edoardo Mapelli Mozzi, and their family, while also owning a substantial property in the Cotswolds.

A source familiar with royal finances told us the arrangements were likely to raise questions because both women have established careers, wealthy spouses, and access to private property outside the royal estate.

Another insider said the report would fuel debate over whether housing benefits originally designed for working royals should continue to apply to family members who no longer undertake official engagements on behalf of the Crown.

A third source said public attention was "likely to focus on the contrast between the princesses' private wealth and the preferential terms attached to palace residences."

While the report stressed no taxpayer money was directly used to pay the sisters' rent, it noted the properties are located within occupied royal palaces maintained through the Sovereign Grant, which supports the upkeep of royal residences.

The National Audit Office also found that for several years, rental calculations for the sisters' homes were based on outdated market valuations.

As a result, some royal properties were being rented below levels that would have reflected more recent market conditions.

Sources close to the Royal Household said the arrangement had originally been approved by Queen Elizabeth and was later honored by King Charles.

They emphasized that financial arrangements are reviewed regularly.