Forest Lodge was last renovated in 2001 at a cost of £1.5 million ($A3.1 million) and went on the rental market for £15,000 ($A31,000) a month. At the time, the eight-bedroom property was valued at £5.5 million ($A11.4 million) but according to house price indices, the home would be worth about £16 million ($A32 million) if sold on the open market.

Prince William and family are moving to Forest Lodge on the Windsor estate, prompting uncertainty about the future of Buckingham Palace.

It’s all in keeping with William not wanting to be a drain on the public purse and living as ordinary a life as he can, even when he is King,” a royal source said.