EXCLUSIVE: Royal Rent Row Erupts Over King's Deals for Non-Working Royals

King Charles is at the center of fresh controversy over property arrangements allowing wealthy, non-working royals to occupy luxurious palace homes at discounted rents – with the monarch personally covering their bills.

RadarOnline.com can reveal the row has erupted after Parliament's Public Accounts Committee published a report criticizing how the Crown Estate manages residential properties occupied by members of the royal family.

The investigation found inconsistencies in rental valuations affecting Princess Beatrice, 38, Princess Eugenie, 36, and Prince Michael of Kent, 84, and Princess Michael of Kent, 81.

Their accommodation is subsidized by Charles, 77, through his private income.

Former Liberal Democrat lawmaker Norman Baker, 69, condemned the arrangements, questioning why wealthy royals should benefit from preferential treatment.

He said: "There can be no earthly justification for allowing well-off royals to benefit from substantially reduced rents. It is just another example of the arrogant sense of royal entitlement that they breezily expect something for nothing."

Baker also demanded the monarchy address any financial disadvantage suffered by the public purse.

He added: "If the King wants to subsidies members of his family, that is up to him, but the public purse should not lose out."

The parliamentary investigation found rents for non-working royals were supposed to be calculated at 60% of market value, but outdated valuations meant the policy had not been consistently applied.

The Crown Estate manages thousands of properties, with profits ultimately benefiting the Treasury and public services.

According to the committee, seven residences are occupied rent-free by working royals, while three properties accommodate family members who undertake no official duties.

Beatrice's four-bedroom apartment at St James's Palace could reportedly command between £15,000 and £20,000 ($15,000 to $27,000) monthly on the open market.

Meanwhile, Eugenie's three-bedroom Ivy Cottage, within Kensington Palace grounds, has an estimated market rental value of £10,000 to £15,000 ($13,000 to $15,000) monthly.

The King reportedly covers their discounted rents through the Privy Purse, funded by income from the Duchy of Lancaster.

Prince and Princess Michael's Kensington Palace apartment has previously attracted controversy over preferential rental arrangements.

The late Queen Elizabeth II eventually paid £120,000 ($160,000) annually for their accommodation following criticism of an earlier agreement costing just £69 ($92) weekly.

The latest investigation also examined property arrangements involving Andrew Mountbatten-Windsor, 66, whose former Royal Lodge lease permitted him to sublet cottages.

Parliamentary investigators discovered that three cottages were simultaneously rented below market rates for a period shorter than a year.

Those arrangements reportedly generated approximately £2,000 (almost $3,000) monthly for Andrew.

The committee recommended stricter controls on royal property leases, including restrictions on subletting without permission.

Its report also called for regular valuations to ensure rental income reflects prevailing market conditions.