Lily Allen is house hunting in London.

The 40-year-old singer/songwriter is moving on after her split from David Harbour last year and plans to settle in London after leaving their Brooklyn townhouse.

A source told MailOnline: "Lily is flashing the cash and she wants to find the perfect home. She is starting afresh after her split and wants the right property for herself and her two daughters. She's looking at many places to find the right one."

Lily bought a West London flat last year but plans to rent that out and settle in either Notting Hill or Primrose Hill.

She is reportedly working with a £5 million budget, thanks to the success of her break-up album, West End Girl.

Meanwhile, Lily - who has daughters Ethel, 13, and Marnie, 12, with her first husband, Sam Cooper, 47 - hints in the album West End Girl that David was unfaithful to her and admitted her experiences in her second marriage gave her a better understanding of the "pain" Sam felt in their relationship.

She told The Observer newspaper: "[I've learned there are no] baddies and goodies in a marriage but, having done things that were not very nice in my first marriage, I have a better idea now of the pain I may have inflicted.

"I've learned how horrible it is to be on the receiving end of that."

Lily has found getting divorced "devastating" and has left her struggling to trust other people.

She said: "It's just sort of devastating, really. It keeps you up at night and costs a huge amount of money and just goes on and on and on. And I hate feeling like I can't trust anyone. But there's something about dealing with an ex-partner and lawyers that creates an environment of feeling like you can't trust anybody or anything."