PRINCESS Alice and the Duke and Duchess of Gloucester are to move out

of their country home ''for financial reasons'', it emerged yesterday.

The Gloucesters can no longer afford to maintain a home at historic

Barnwell Manor, near Oundle, Northamptonshire.

From spring, they will live at the Kensington Palace apartment in

London which is provided by the Queen in return for the duke and duchess

carrying out official engagements.

Princess Alice, 93, who is the Queen's aunt, will move to London

within the next three months.

The Gloucesters' private secretary Major Nicholas Barne said there

were no plans to sell Barnwell Manor, which has been in the family and

their principal residence since 1938.

The duke would continue to farm the estate, said Major Barne.

''This is not an overnight decision. It's basically for financial

reasons.

''There has been a general erosion of finances over the years due to

the size of Barnwell Manor and difficult times for farming.''

A statement from Kensington Palace announced that ''as from spring

1995, the sole residence of Princess Alice, Duchess of Gloucester, and

the Duke and Duchess of Gloucester will be Kensington Palace.

''Although it is no longer possible for their Royal Highnesses to

maintain two homes, and the future of Barnwell Manor itself is not as

yet decided, the Duke of Gloucester will continue to farm Barnwell Manor

estate as before.

''He and his family, therefore, hope to retain the close links they

have enjoyed for over 50 years with the local community.''

Barnwell Manor stands in the grounds of the ruined Castle of Barnwell

which dates from the thirteenth century. The Elizabethan manor house,

adjoining the castle, was built in 1586.

The manor and 2500-acre estate were purchased in 1938 by Princess

Alice's husband, Prince Henry, Duke of Gloucester, although there were

family links with Barnwell before 1913 when the princess's father, then

Earl of Dalkeith, sold the property.

Prince Richard, Duke of Gloucester, 50, who is a qualified but

non-practising architect, is a grandson of George V and a first cousin

of the Queen.

In July 1972, he married Danish-born Birgitte Eva van Deurs, whom he

met while studying architecture at Magdalene College, Cambridge.

Six weeks later, their lives changed dramatically when Prince

Richard's elder brother, Prince William of Gloucester, was killed in a

flying accident and Prince Richard unexpectedly became heir to the

dukedom.

He succeeded to the dukedom two years later.