William, Kate want to settle down in Kensington Palace

Updated: May 02, 2011, 19:55 PM IST

London: Prince William and his wife Kate Middleton plan to settle down at Kensington Palace, where Princess Diana lived, media reported today.

Although Queen Elizabeth II has offered Buckingham Palace to the couple, it has been reported that Prince William prefers to live at the same palace where he grew up.

According to the Sunday Times, when William and Kate return from their eventual honeymoon, they will decide on a London residence.

"It is likely to be Kensington Palace, once the home of Diana, Princess of Wales, William`s mother," the report said.

The Palace is located close to where the Indian High Commissioner to the UK Nalin Surie and Indian steel tycoon Lakshmi Mittal stay.

Plans are under way for William to start receiving income from the Crown Estate to set up his own court rather than relying on handouts from his father`s estate, the Duchy of Cornwall.

Prince Charles currently spends 1.6 million pounds a year on personal expenses for him, Camilla, William and Harry from the 17.1m pounds income he receives each year from the Duchy of Cornwall.

At present, William is understood to receive 300,000 pounds a year from interest on his inheritance from his mother, Diana to supplement his pilot`s earnings of 37,170 pounds.

William and Harry were granted an equal share of her 21m pounds, leaving them an initial 6.5m pounds each after death duties.

When the brothers turned 25 they were allowed access to the interest from the lump sum, which was invested wisely and will now be a considerably larger figure.

William can expect to draw his full entitlement when he turns 30 in June next year.

For the time being, William and Kate will continue to share an apartment with Prince Harry at Clarence House when they are in London, before they shift to Kensington Palace.

Kensington Palace is a royal residence set in Kensington Gardens in the Royal Borough of Kensington and Chelsea in London. It has been a residence of the British Royal Family since the 17th century.

The palace is also used on an unofficial basis by Prince Harry, as well as his cousin Zara Phillips.

It was the official residence of Diana, Princess of Wales until her death in 1997.