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Having recuperated from their Royal Tour of North America, Prince William and Duchess Kate have moved into their new London residence at Kensington Palace, a Clarence House rep confirms to Us Weekly.

And while reports online Tuesday claim that the newlyweds, both 29, have moved their things into a two-bedroom apartment on palace grounds, a royal insider tells Us their new digs are actually a two-bedroom cottage.

Plus, Kate has already made her personal touch on the new home -- purchasing $1458 worth of air fresheners and candles designed by Kelly Hoppen, a palace source confirmed to Us.

"Kate is used to a more modern, relaxed environment," a pal told the Daily Mail. "She felt [Kensington] had an overriding musty, damp smell, and ordered a six-month supply of her favorite products to override this. She’s also thrown pillows around to make it look more minimalist-chic and less fuddy-duddy. William was happy to go with the flow."

And British designer Hoppen has been pegged to design the couple's permanent royal residence (Kensington Palace is just their temporary London abode until 2013).

"Kelly Hoppen has already been selected to take care of the interior design at the palace," a royal aide told Us. "They want to create a modern quarter to live in. She has been actively involved in meetings with William and Kate's office"