The weakness in the value of the pound is tempting foreign buyers to London, who are finding the potential for significant discounts.

Hamptons International found that a buyer with US Dollars could currently expect to pay 39% less on a UK home than it would have cost them in December 2007, highlighting the savings on offer. London is a main attraction for foreign buyers, where a prime London residence that would have cost a million pounds in December ’07 would now be in the region of £470,000 – a 53% reduction in cost.

While prime property in London will always gather interest from foreign buyers, country residences are also proving popular, with a 12% increase in the number of overseas buyers registering, the majority from the US and Europe.

Rob Bruce, research manager at Hamptons International, said: “The devaluation of Sterling has, without a doubt, created an extremely favourable climate for foreign investors in the UK.

“We have seen a strong increase in international buyers over the last few months – particularly from Italy and France.

“This trend started in London and is now filtering out across the Country, particularly in high profile UK regions such as the Home Counties, the Cotswolds, and Devon and Cornwall.

“The continued weakening of the pound will continue to bring a steady stream of international buyers to the UK market over the next six months.”