Parliamentary scrutiny is set to examine Prince Andrew's residential arrangements at his Windsor estate, where he currently resides under a nominal rental agreement.
The Public Accounts Committee has announced plans to investigate the lease terms at Royal Lodge, where Prince Andrew pays what is known as peppercorn rent - a symbolic sum used primarily to validate the tenancy agreement.
The committee's chairman, Sir Geoffrey Clifton-Brown, confirmed that formal correspondence would be sent to both the Crown Estate Commissioners and HM Treasury within the next few days.
He said: “The Public Accounts Committee, which I chair, will be writing in the coming days to the Crown Estate Commissioners and HM Treasury, seeking further information on the lease arrangements for Royal Lodge.
Prince Andrew suffers setback as chairman confirms Royal Lodge investigation
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“In the correspondence, our cross-party committee will be raising a number of questions with the Crown Estate and HM Treasury.”
Sir Geoffrey stated that the inquiry forms part of a long-standing remit "on behalf of Parliament and the British public to examine the economy, efficiency and effectiveness of public spending, and ensure the taxpayer is receiving best value for money".
This development follows the Government's decision not to allocate Commons time for debates about Andrew's behaviour.
The Prime Minister's spokesman confirmed on Thursday that MPs would not receive parliamentary time to address Prince Andrew's association with convicted sex offender Jeffrey Epstein or his accommodation arrangements.
Royal Lodge is located on the Windsor Estate | GETTY"Prince Andrew has already confirmed he will not use his titles," he said.
"We support the decision made by the Royal Family, and we know the Royal Family would not want to take time from other important issues."
Parliamentary procedure dictates that any discussion of Royal Family members requires a formal motion, according to Commons Speaker Sir Lindsay Hoyle.
He clarified that whilst no prohibition exists on debating royal conduct, such matters cannot be raised during routine question periods but instead need a substantive motion.
Sarah Ferguson and Prince Andrew divorced in 1996 but continue to live at Royal Lodge | GETTYThe Government maintains control over most parliamentary scheduling, making such debates unlikely without ministerial support.
Conservative Party leader Kemi Badenoch has distanced herself from calls by shadow justice secretary Robert Jenrick for Prince Andrew to vacate Royal Lodge.
When questioned about supporting Mr Jenrick's position, Mrs Badenoch responded: "I'm the Leader of the Opposition, he's not the Leader of the Opposition."
She added: "I don't comment on royal matters."
The York family have a close relationship, with Sarah and her daughters often posting photos of each other to mark special occasions | INSTAGRAM / SARAH FERGUSONAndrew relinquished his military titles and royal patronages last Friday amid persistent allegations connected to his relationship with Epstein.
These developments have intensified scrutiny of his living arrangements at the 30-room Windsor property.
The pressure on Prince Andrew has mounted following revelations in a posthumous memoir by Virginia Giuffre, who accused him of sexual misconduct.
The prince has consistently and strongly rejected Mrs Giuffre's claims that she was compelled to engage in sexual activity with him on three occasions, including when she was 17 years old, after allegedly being trafficked by Epstein.
The investigation into his lease arrangements represents the latest challenge for Andrew, who has faced sustained criticism over his connections to the deceased financier.