The 'Who'd Have Known' singer – who has just announced she is three months pregnant – and her man Sam Cooper are reportedly keen to tie the knot and are considering getting wed before the baby is born.
A source said: "Marriage has never been a big deal to them, but now their friends are saying they may well marry just before the baby is born or just soon after."
Lily has been inundated with messages from well-wishers delighted for her, and supermodel Kate Moss could barely contain her excitement when she discovered her friend was expecting.
The source added to more! magazine: "Her friends and family are over the moon. They've know it's what she wants for ages, When Kate Moss, one of Lily's good friends, found out she squealed with delight and Lily's had dozens of bunches of flowers from fans."
Lily, 25, and Sam, 32, are now said to be looking for a home in the English countryside because they don't want to raise their child in London.
A source told Look magazine: "They are looking for a new house in the Cotswolds, somewhere near her dad's place, as it'll be more peaceful than raising a baby in London.
"Lily says she won't have a nanny – she wants to do everything herself."
Before she got pregnant, Lily – whose dad, comedian-and-actor Keith Allen, left her mother Alison when she was just five – announced she was taking a five-year break from music to focus on other priorities.