Princess Charlotte keeps up a Royal tradition

The name Charlotte had been a favourite with the bookies during the week but in the last few days had been pushed into second place by Alice. Her middle names, Elizabeth and Diana, obviously recognise her great-grandmother the Queen - Elizabeth II - and her grandmother Diana, Princess of Wales.

The Princess, who was born on Saturday May 2 at 8.34am, weighing 8lbs 3oz, will be known as Princess Charlotte.

Kensington Palace said in a short statement: “The Duke and Duchess of Cambridge are delighted to announce that they have named their daughter Charlotte Elizabeth Diana.

“The baby will be known as Her Royal Highness Princess Charlotte of Cambridge.”

Charlotte is likely to be a tribute to William’s father the Prince of Wales as it is the feminine form of the name Charles.

Yesterday news of the name picked by William and Kate was welcomed on social media site Twitter.

Michael Rhodes, of Harrogate, tweeted: “So she’s to be Princess Charlotte Elizabeth Diana of Cambridge - Aunt Pippa is also Charlotte.”

While Flint Bedrock, of Leeds, said: “Charlotte Elizabeth Diana.” A fitting tribute to this amazing woman.”

Royal fan, Munever Halil, from Catford in south east London, who spent several hours outside Kensington Palace trying to catch a glimpse of the young family, said: “I so much wanted the name Diana to be in there somewhere.”

The betting industry is estimated to have paid out one million pounds to punters who guessed the name Charlotte, according to Ladbrokes.

Spokeswoman Jessica Bridge said: “Charlotte was the hot tip over the weekend and royal watchers up and down the land are quids in.

“We may have lost a fortune but we’re paying out with a smile and wish the Duke and Duchess all the best.”

But bookies William Hill said they were breathing a sigh of relief that William and Kate picked Charlotte, and not their favourite Alice.

Spokesman Rupert Adams said Charlotte finished as their 3/1 second favourite, with 5,096 punters correctly guessing the name and in total they would pay out just over £100,000 in the name market.

William’s Uncle Earl Spencer tweeted his approval of the names chosen by the Cambridges for their daughter.

His said: “Perfect names. My two-year old Charlotte Diana will be thrilled at cousinly name-sharing.”

David McCorquodale, UK head of retail at KPMG, predicted the new arrival would lead to a spike in consumer spending saying the birth of Prince George brought a feel good factor to consumers and led to a golden month for retailers.

The name is likely to become popular with parents across the country but at the moment, it is outside the top ten most popular girls names for last year, as compiled by www.babycentre.co.uk

The baby princess will join a host of famous women with the same name including writer Charlotte Bronte.