The data, released by Crayson, revealed that the motivation for can range from investors 'hedging against the instability of their own property markets', to them investing in a property for their offspring or simply making a sound investment. It also showed that half of Kensington and Chelsea residents were not born in Britain.

Exchange rates may also be behind foreign investors' increased interest in West London, primeresi.com suggested - as it was revealed that over the last five years, even though prices in London effectively rose by 30% for those paying with pounds sterling, they only rose by four per cent for those paying with US dollars.

Sales of multi-million-pound properties fell during the same period, though, indicating that overseas investors are opting for smaller, more affordable properties - which they may transform into serviced flats. London is a key draw for businessmen and women from around the world, making the serviced apartment market a fruitful one.

The Crayson research confirmed that during this time, the transactions of properties valued at £2 - £5 million dropped by almost a quarter. This could be down to the rise in stamp duty on properties worth over £2 million.