In the chilly night air at London's Camden market, concertgoers and shoppers seemed surprised by the news -- though all agreed that it had been widely anticipated.
"It feels a lot like a Christmas present for the nation!" said Ravian Van Den Hil, a Dutch student studying in London. "It makes me feel quite happy."
Others wondered why Britain continues to spend so much to support the royal family.
"I don't think it's a good thing," said Stephen Jowitt as he strolled down Camden High Street. "It reinforces a class system."
The palace said the royal family was "delighted" by the news.