Royal palaces: under scrutiny

Prince and Princess Michael of Kent are set to yield to demands to pay more in rent for their Kensington Palace apartment.

The Kents, who came under fire from MPs after it was revealed they paid less than £70 a week, have signalled that they are prepared to pay £50,000 a year for the grace-and-favour residence.

The move, reported in the Sunday Times, is being seen as an attempt to pre-empt criticism from the Commons Public Accounts committee, which is set to publish a report into the rents charged for apartments in royal palaces.

MPs expressed anger at the "peppercorn rent" paid by the couple.

Whilst the apartment is in the gift of the Queen, MPs pointed out that the building is essentially owned by the taxpayer - who was entitled to expect value for money.

But the new arrangement may not be enough to silence critics of the arrangement.

According to experts the commercial rent on a property such as the Kents' apartment could be close to £200,000 a year.