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Wills and Kate 'delighted' by new home

London - Britain's Prince William and Duchess Catherine are "delighted" with their temporary accommodation at Kensington Palace.

The newlywed royal couple have hand-picked a small cottage in a quiet spot within the grounds of the palace, which can be accessed via an archway although they will eventually move into a more luxurious apartment.

A source told Britain's Daily Mail: "It's a very sweet cottage. Catherine has been overseeing the refurbishments there, but they haven't done much to it, really - it's just a lick of paint to freshen the place up.

"They will use the cottage at weekends when they are in London. Although it's not huge it's their own space and they are delighted with it.'

Diana’s jewellery

However, William and Catherine - who rent a farmhouse near the Prince's search-and-rescue base in Anglesey, Wales during the week - are currently deciding on a permanent London base, and are tipped to take Apartment 1a in Kensington Palace, a lavish 19-room suite that was once the home of the late Princess Margaret.

The source added: "They have been to look around Margaret's apartment and like it very much."

A spokesperson said: "Their home will remain Anglesey, but Kensington Palace will become their London residence."

Meanwhile, William - who proposed to Catherine with his late mother Princess Diana's engagement ring last year - has given his wife a pair of Diana's precious sapphire and diamonds.

A courtier said: "Now they're married, William wanted her to have some of his mother's beloved pieces."

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