Buckingham Palace reacts after King Charles secret move for Princess Eugenie, Beatrice

The palace has reacted after National Audit Office (NAO) report revealed King Charles pays the rent for accommodation in royal palaces for his nieces Princesses Eugenie and Beatrice, who are not working royals.

Sarah Ferguson and Andrew´s daughters have apartments at royal palaces with rent paid from the privy purse -- King Charles´s private income -- despite not being working royals, the report has revealed.

The UK government auditor’s report comes as parliament´s Public Accounts Committee is set to launch an inquiry this year into royal properties.

It is the first report into royal residences in 20 years and shows Mountbatten-Windsor and his family and staff had 12 properties, owned by the Crown Estate or the Royal Household.

Meanwhile, following the NAO report, the Buckingham Palace spokesperson said: “We are grateful to the National Audit Office for this report, which is in line with the royal household’s commitment to transparency. We hope that the findings will help correct, clarify or contextualise a number of points regarding royal properties.

“As the report notes, arrangements for properties managed by the royal household vary based on a number of factors to ensure residences are filled appropriately, depending on their location, tenants and purpose.”

Moreover, there are also claims that Andrew earned a private income from subletting cottages while paying a symbolic "peppercorn rent" for a mansion for over two decades.

Andrew Mountbatten-Windsor until recently lived in the Royal Lodge on the royal family´s Windsor estate near London.