The St James’s Palace flat, featuring two reception rooms and a modern fitted kitchen, underwent a £250,000 refurbishment funded by taxpayers when Andrew’s lease commenced in 2008

Princess Beatrice and Princess Eugenie’s central London flat was rented by Andrew Mountbatten-Windsor in a cut-price deal.

A new investigation uncovered that Andrew Mountbatten-Windsor paid merely £1,600 per month to rent a four-bedroom apartment at St James’s Palace for his daughters Princess Beatrice and Princess Eugenie.

Comparable properties within St James’s Palace commanded £20,000 monthly on the open market.

The 65-year-old’s annual outlay of under £20,000 represented a fraction of the £240,000 such accommodation would typically generate for Crown coffers.

Princess Beatrice and Princess Eugenie’s central London flat was rented by Andrew Mountbatten-Windsor in a cut-price deal. | GETTY

Throughout the 14-year period his daughters resided at the prestigious central London address, the arrangement potentially saved Andrew as much as £3.1million according to the Mail on Sunday.

This marks the second controversy surrounding the royal’s housing arrangements, following earlier revelations about his rent-free occupation of the 30-room Royal Lodge on the Windsor Estate spanning two decades.

The St James’s Palace flat, featuring two reception rooms and a modern fitted kitchen, underwent a £250,000 refurbishment funded by taxpayers when Andrew’s lease commenced in 2008.

A comparable apartment within the palace, designated 29A, was advertised for rental at £20,000 monthly in 2015, equating to £240,000 annually.

Throughout the 14-year period his daughters resided at the prestigious central London address, the arrangement potentially saved Andrew as much as £3.1million.| GETTY

Properties such as 29A, situated beyond the palace’s security perimeter, are understood to command premium rental prices.

Andrew’s Royal Lodge arrangement involved a £1million upfront payment securing a 75-year lease, with subsequent rent obligations limited to “one peppercorn (if demanded) every year” – a traditional legal term effectively eliminating meaningful ongoing payments.

This symbolic peppercorn clause meant the royal faced no substantial rental costs for the sprawling Windsor Estate residence over two decades.

A public accounts committee inquiry will scrutinise lease arrangements across the Crown Estate portfolio, examining deals involving multiple members of the Royal Family.

A public accounts committee inquiry will scrutinise lease arrangements across the Crown Estate portfolio, examining deals involving multiple members of the Royal Family. | GETTY

The investigation will assess the Prince and Princess of Wales’ arrangement for Forest Lodge, their new family residence, where they reportedly pay market-rate rent.

Prince Edward and his wife Sophie’s situation at Bagshot Park will also face examination – the couple secured their sprawling Windsor Great Park mansion through a £5million lump sum payment in 2007, subsequently occupying it rent-free.

Additionally, the committee will review the £225 monthly rent paid by Princess Alexandra, the late Queen’s cousin, for her Richmond property.

The inquiry represents a comprehensive review of how Crown Estate properties are allocated to members of the royal household.