PRINCE Andrew will pick up the greatly reduced rent on an exclusive central London property for his two daughters, British media reports.
The Queen's second son will pay about STG20,000 ($A30,900) a year to allow his daughters Princess Beatrice, 24, and Princess Eugenie, 22, to live in a four-bedroom apartment at the tudor-style St James's Palace.
The fifth and sixth in line to the throne, Beatrice and Eugenie are no longer entitled to live rent free because they have finished their education and do not undertake official duties representing the Queen, Britain's Daily Express newspaper reported.
Real estate agents estimate annual rent on the property, which dates back to the 1500s and was last refurbished in 2008, would be up to STG150,000.
While palace officials declined to confirm the exact figure being paid by Andrew, they said market value could not be charged because the property is in a secure zone, not open to the public.
Since completing a history degree, Beatrice has started work with a venture capital firm in the English capital, while Eugenie has been doing work experience with Christie's auction house since graduating from English and history of art studies.
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