Prince William spent his childhood at the Palace.
Their new London home has five bedrooms and three reception rooms, enough space to begin a family.
TRH are understood to have settled on Apartment 1A as the move will allow them to remain close to Prince Harry. Before their wedding, the couple shared living quarters with him at Clarence House.
Occupied by HRH The Princess Margaret, Countess of Snowdon, until her death in 2002, Apartment 1A has not been redecorated since she moved there in 1960 with her then husband, Lord Snowdon; and still features HRH's blue and grey colour schemes in several of the rooms.
It is currently used as offices for Palace staff and as storage space.
The Duchess of Cambridge is believed to be keen to take a "hands on" approach to decorating their new home, although she is also expected to consult interior designers.
A royal aide said:
"Renovating their new home will be a massive job and the Duchess [of Cambridge] will likely approach it as she did their wedding – taking advice where needed but ultimately making the decisions herself. The couple looked quite seriously at another apartment in St James's Palace, but decided on Kensington Palace as it meant they could stay together with Prince Harry. The accommodation also provides the right level of privacy for them and is sizeable enough for them to start a family and entertain both privately and in an official capacity. While [TRH] remain very close to the Prince of Wales, the move away was part of a natural evolution for them as a newly married couple."
The royal couple will share Kensington Palace with the Duke and Duchess of Gloucester, the Duke and Duchess of Kent and Prince and Princess Michael of Kent.
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