The report also reveals that the Crown Estate paid for repairs worth almost £400,000 before the Prince and Princess of Wales moved into their Windsor home at Forest Lodge.
Princess Michael of Kent, another non-working royal, also has a property in Kensington Palace which is paid for by the privy purse.
Eleven working royals have accommodation in the palaces without charge in exchange for their official duties.
These are the:
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King and Queen
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Princess Royal
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Duke and Duchess of Edinburgh
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Duke and Duchess of Gloucester
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Duke of Kent
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Princess Alexandra
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Prince and Princess of Wales have an apartment in Kensington Palace, as well as their Crown Estate property.
The report found 21 other royal post-holders, including 17 military knights, have accommodation without charge in the occupied palaces.
The NAO report does not make any judgements on value for money or draw any conclusions, but it is intended to provide information for MPs on the public accounts committee.
“Our role is to set out the facts – and that’s why this is an investigation that sets out the processes and the arrangements both from the Crown Estate and the Royal Household,” said NAO director Lee Summerfield.
A Palace spokesman said it was “grateful” for the report which was “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,” the spokesman added.
“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,” he said.
