Eugenie and Beatrice continue to live in royal palaces as 'Andrew wanted them to have a foothold'

These properties function as London boltholes for both women, who have established their primary homes elsewhere.

A source told The Times: "The [rental] deal was made with their father as he wanted them to have a foothold in the royal palaces."

The private arrangement between the York family and the King requires payment of an undisclosed rental sum, though Mr Mountbatten-Windsor himself has been without a Buckingham Palace office since 2022.

Previously, Mr Mountbatten-Windsor covered his daughters' accommodation costs at a rate of £1,600 monthly for a four-bedroom apartment at St James's Palace, a figure widely regarded as substantially below market value.

Local estate agents have estimated comparable properties in Kensington would command between £4,000 and £15,000 per month, depending on size and condition.

To illustrate the disparity further, a two-bedroom flat near St James's Palace was recently listed at £19,000 monthly.

Whether the princesses now bear responsibility for their own rental payments remains unclear.

The rental income from these Palace arrangements is understood to flow back into the sovereign grant, which finances official royal duties.

Beatrice resides primarily in a £3million Oxfordshire property with her husband Edoardo Mapelli Mozzi and their children, while Eugenie and her husband Jack Brooksbank are based in Portugal with their two sons.

Mr Mountbatten-Windsor was compelled to surrender his lease on Royal Lodge in October following fresh revelations about his association with disgraced financier Jeffrey Epstein, having previously paid only a peppercorn rent for two decades on the Crown Estate property.

The Crown Estate confirmed earlier this month to GB News that he has also agreed to give up the lease on East Lodge, a property near his former Sunninghill Park residence that housed his staff.

He currently resides at Wood Farm on the Sandringham Estate whilst permanent accommodation is arranged.

On his 66th birthday, police arrested Mr Mountbatten-Windsor at the property on suspicion of misconduct in public office, though he was subsequently released without charge and remains under investigation. He has consistently denied any wrongdoing.

US Department of Justice documents released last year indicated connections between Epstein and Mr Mountbatten-Windsor 's former wife, Sarah Ferguson.

Emails appear to show that Ms Ferguson brought Beatrice and Eugenie to meet Epstein just weeks after his release from prison following a sex trafficking conviction.

Eugenie subsequently resigned as patron of Anti-Slavery International after seven years, following the Charity Commission's announcement that it was assessing concerns about the Anti-Slavery Collective, a separate organisation she co-founded in 2017.

Royal property arrangements face heightened examination in the coming months when the Public Accounts Committee launches an investigation into rental agreements between royals and the Crown Estate, the public body that returns its profits to the UK exchequer.

Beyond Crown Estate rentals, the Royal Family utilises official residences including Buckingham Palace, Windsor Castle, Holyroodhouse and Kensington Palace, where grace and favour homes accommodate staff and relatives.

Buckingham Palace declined to comment when approached by GB News. Princesses Beatrice and Eugenie have been contacted for comment.