Move Princess’s residence (8)
I believe the answer is:
displace
'move' is the definition.
(displacing is a kind of moving)
'princess's residence' is the wordplay.
'princess's' becomes 'di's' (Princess Diana).
'residence' becomes 'place' (place is a kind of residence).
'dis'+'place'='DISPLACE'
(Other definitions for displace that I've seen before include "Supplant" , "Oust" , "Shift" , "Succeed" , "Move out of position" .)