Princesses Beatrice and Eugenie are reportedly still renting properties in the Royal Palaces due to an agreement struck by their father, Andrew Mountbatten-Windsor.
The two royals, who both primarily reside outside London, pay an undisclosed sum of rent to the King in order to retain their second homes, according to reports in The Times.
Mr Mountbatten-Windsor was forced to leave his home at Royal Lodge in February following fresh scrutiny over his links to paedophile financier Jeffrey Epstein. The former prince was stripped of his royal titles last year, but both his daughters retain theirs.
Beatrice has an apartment in St James’s Palace and Eugenie has Ivy Cottage, a three-bedroom property at Kensington Palace, as their London homes, it has been reported.
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.”
Beatrice primarily lives in Oxfordshire with her husband Edoardo Mapelli Mozzi and daughters Sienna, four, and Athena, one.
Eugenie lives in Portugal with her husband Jack Brooksbank and their children August, five, and Ernest, two.
Mr Mountbatten-Windsor has moved to the Sandringham Estate in Norfolk, living at a property owned by King Charles at the monarch’s expense.
He was arrested last month on suspicion of misconduct in public office after being accused of sharing sensitive information with paedophile Jeffrey Epstein while he was a trade envoy. He has not been charged and has denied any wrongdoing.
The former prince is still eighth in line to the throne, which cannot be changed without an act of parliament.
The government is considering introducing legislation that would see him removed, but said it could take “years”, and would not begin until after the investigation into the former prince has concluded.

His position means that all of his grandchildren rank higher in the line of succession than the Duke of Edinburgh.
A recent poll revealed that 82 per cent of Britons think that Mr Mountbatten-Windsor should be removed from the line of succession.
The calls for Andrew’s removal from the royal line of succession have also been backed by the leaders of Australia and New Zealand, who said they would support the UK government’s decision.
Buckingham Palace has been contacted for comment.
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