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Kensington Palace, Prince Harry, William, Kate

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Party at the castle!

Prince Harry has moved into a a small, one-bedroom apartment in Kensington Palace, where his brother, Prince William, and sister-in-law, Kate Middleton, took up residence last year, a source confirms to E! News. 

Won't that be a little close for comfort for the royal relatives?

Nah. William and Kate currently live in Nottingham Cottage, on the grounds of Kensington Palace, but CNN reports they'll move into a renovated apartment in the main building next year.

Harry, 27, is expected to take over the cottage when his brother and sister-in-law move into their new apartment.

William and Harry grew up in Kensington Palace, where they were raised by Princess Diana, who lived there from 1981 until her death in 1997.

—Additional reporting by Melanie Bromley