Barnaby Joyce is being scrutinised for accepting the free rent of a townhouse from a prominent businessman in his electorate.

The businessman, Greg Maguire, owns the Powerhouse Hotel in Armidale and several businesses in Tamworth, and has been connected with two local political scandals over the past two decades.

Mr Joyce did officially report the free housing as a gift, but did not state its value, which is estimated to be around $14,000.