From the autumn the Duke and Duchess of Cambridge will be spending increasing amounts of time in their six-bedroom apartment at Princess Diana's former London residence.
Prince George and Princess Charlotte will also go to school and nursery in the capital as William and Kate step up their royal duties to support the 90-year-old Queen.
The couple moved into a cottage in Kensington Palace after they were married in 2011 and had Princess Margaret's former apartment 1A renovated for them at a cost of £4.5 million before they relocated there in 2013.
However, for the past few years they have been spending most of their family time at their country home Anmer Hall in Norfolk, where three-year-old George goes to nursery, and where Kate enjoys under-the-radar outings while William works in the air ambulance.
But as The Queen and Prince Philip, 95, look to decrease their future workload the Cambridge family has announced that, while Anmer will still be their "home" their family life will increasingly be based in London.
"From this Autumn, however, The Duke and Duchess will increasingly base their family at Kensington Palace.
"As they have in recent years, Their Royal Highnesses are keen to increase their official work on behalf of The Queen and for charities and causes they support, which will require greater time spent in London.
"Prince George will begin school in September and Princess Charlotte will also go to nursery and eventually school in London as well.
"His Royal Highness will finish his role with the EAAA in the summer in line with his commitment to fly with them for two years."
William said: "It has been a huge privilege to fly with the East Anglia Air Ambulance.
"I would like to thank the people of East Anglia for being so supportive of my role and for letting me get on with the job when they have seen me in the community or at our region's hospitals.
"I would especially like to thank all of my colleagues at the EAAA, Babcock, and Cambridge Airport for their friendship and support.
William and Harry spent their childhood at Kensington Palace in apartments eight and nine where their mother Princess Diana continued to live after her divorce from Charles until her death in August 1997.
Apartments eight and nine are now offices for William, Kate and Harry's charitable work.