The 25-year-old singer took legal action when the newspaper printed the picture of her mansion in the Cotswolds under the headline 'Pregnant Lily spends £3m on stunning Cotswold home'.
The Guardian reported that Allen claimed breaches of copyright and privacy laws had been made and originally demanded between $80,000 (£50,000) and $160,000 (£100,000) in damages.
She argued that the article left her more vulnerable to stalkers and fans, and that she owns the photos, and was granted an undisclosed sum by the UK High Court on Monday (21Mar11).
The star's legal fees will be taken care of as part of the settlement.