Princess Eugenie is unable to move into Ivy Cottage as her family are "refusing" to pay for repairs to the residence's damp problem.
The 26-year-old royal was hoping to move into the cottage - which is located on the grounds of Kensington Palace - at the end of last year with her boyfriend of six years Jack Brooksbank, but plans have been put on hold after damp which would cost "thousands of pounds" to treat was discovered in the basement of the three-bedroom property.
A source said: "Eugenie's family don't want to pay for the repairs because they don't own the building but the powers-that-be are refusing to come up with the cash as well.
"At the moment it's a stand-off and the whole thing is in limbo.
"The problem is that normally repair work would be done to several properties at once to keep costs down but there are no plans for neighbouring buildings at the moment.
"It's true to say there have been some heated discussions with certain individuals digging their heels in, but so far there has been little give and take. Something will have to give soon if Eugenie and Jack are to move in quickly."
Princess Eugenie - who is the daughter of Prince Andrew and his ex-wife Sarah Ferguson - is said to be "upset" by the delays as she is reportedly hoping to make "wedding plans" within her new home.
The source added to the Daily Express newspaper: "Eugenie is obviously a bit upset as she was hoping to be making wedding plans by now.
"She was really looking forward to moving in and creating a warm and welcoming home, but it seems she will just have to be patient until this is resolved."