Beatrice and her husband Edoardo Mapelli Mozzi are currently living in St James’s Palace, their first marital home after wedding in July. She used to occupy the property with Eugenie until the latter moved to the grounds of Kensington Palace.
But now that Eugenie has moved into Prince Harry and Meghan Markle’s former UK residence, Frogmore Cottage, that leaves Ivy Cottage vacant.
Initially, royal observers suggested that Beatrice and Mr Mapelli could move into Nottingham Cottage.
But the smaller sized residence only has two bedrooms, making it cosier than Ivy Cottage, which boasts three bedrooms.
If the couple decide to move to Kensington Palace, they will have Prince William and Kate Middleton as neighbours, as well as Prince and Princess Michael of Kent.
Other members of the Royal Family who have lived on the grounds of the London Palace include Princess Margaret and Diana, Princess of Wales.
The speculation about Beatrice’s living arrangements comes after it was revealed that Eugenie moved into Frogmore Cottage ahead of her baby’s expected arrival next year.
She announced her pregnancy this autumn and the palace confirmed the baby was due early 2021.
Due to her pregnancy Eugenie in the high-risk category for COVID-19 and she may choose to stay at home this Christmas.
“It appears they are tying up loose ends as they plan to extend their stay in the US perhaps permanently.”
Insiders told The Sun that other members of the Royal Family were “blindsided” by Harry and Eugenie’s plans.
The source said: “Senior royals were initially blindsided by the idea for Harry and Meg to let Eugenie and Jack move in.
“Obviously the Queen was told after the couples had spoken about the plan.”