A cross-party committee of MP's has this week branded royal rents as an outrage. The attack was aimed at so-called 'minor' Royals living in Kensington Palace, who are living in lavish luxury, paying what was termed a "peppercorn rent" - in some cases less than £100 per week - to live in a property that costs the taxpayer around £15 million each year.

The comments were made after the MPs were given a three hour tour of the palace, which includes Prince and Princess Michael of Kent and the Duke and Duchess of Gloucester among its residents. MP's called for the Royals to do the decent thing and move out, so that the apartments can be put on a more commercial footing.

Edward Leigh, the Conservative chairman of the committee, said: "I am sure that those people who live here can understand the public concern about it. The long-term plan is to empty this palace and remove the security cordon so it is open to the public and more commercial and that is something we welcome."

Alan Williams, Labour MP for Swansea West, said: "Think of all the anguish of people working in the public service, people who cannot afford to live in even tiny apartments and we are having to look for cubicles in which to put our teachers and nurses. We asked if vacating would mean ten, 15 or 20 years but we could not get an answer. They say they are planning to vacate this palace, I think they are planning to vacate it when it falls down. The issue is the value of the properties and what is or is not being paid for them. Some people living in them are not even paying rent, what they pay simply covers the electricity and other charges and it is about time we moved on this."

The visit followed a report in March last year in which the committee suggested that the royal household should reduce the burden on the taxpayer of the royal residences by letting out some of the grace-and-favour properties at commercial rates.