Tumultuous year for UK property market widens divide between rich homeowners, high

Mr Ed Lewis, head of residential development at Savills, said: “I know what the hurdles are for, particularly the younger age group, getting into the property ladder.”

He added: “But London doesn’t work without it being an international city. And London doesn’t get built without international investment.”

Prices at the top end of the market have seen little change, and that is widening the gap between richer homeowners and those with high-interest mortgages.

The rising interest rates signalled the end of a long era of cheap borrowing.

The last time the base rate of interest was as high as the current rate was in 2008, with the average UK property price having risen 72 per cent since then.

Foreign buyers, many from Asia and the Middle East, have contributed to the jump.

Dr Filipa Sa, a senior economics lecturer at King’s College London, said: “If we keep foreign investment constant at the level of the year 2000, we see that in 2019, house prices would have been about 17 per cent lower.