Prince Harry toured South America and the Caribbean earlier this month

Prince Harry returned from his Diamond Jubilee tour and is now a close neighbour to Prince William and Kate Middleton at Kensington Palace. 

The 27-year-old has left Clarence House and now reportedly lives in a one-bedroom former staff dwelling close to Wills and Kate's Nottingham Cottage, which is in the north of the palace grounds.

'It's a small, one bedroom apartment,' says a source.

'Not what you might normally expect. But he is very happy with the arrangement.'

The Duke and Duchess are reportedly thrilled to have Harry close by in what is jokily labelled the 'royal bedsit'.

But Harry - who was previously living with his father, Prince Charles, 63 - may relocate once again when Kate, 30, and Wills, 29, move in to Princess Margaret's old apartment nearby next year.

'Prince Harry moved into accommodation at Kensington Palace when he returned from the overseas tour,' confirms a St James's Palace
spokesman to Mail Online.

'This will now act his official London Residence.

'He still anticipates moving into the property currently used by The Duke
and Duchess of Cambridge once they vacate it in the future.'

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Esme Riley