London mayor Sadiq Khan is to launch an inquiry into foreign investment in London’s housing market.

However, the investigation will affect a number of other cities and towns elsewhere in the UK.

Khan said there are “real concerns” about the number of overseas investors buying property in Britain.

He said: “It’s clear we need to better understand the different roles that overseas money plays in London’s housing market, the scale of what’s going on, and what action we can take to support development and help Londoners find a home.

“That’s why we are commissioning the most thorough research on this matter ever undertaken in Britain – the biggest look of its kind at this issue – so we can figure out exactly what can be done.”

Overseas buyers are not just eyeing up London, but also other cities such as Manchester, Liverpool and Birmingham, while property in Slough is being marketed in Hong Kong to potential Chinese buyers.

The Chinese are the biggest buyers of new-build residential accommodation globally, with the Singaporeans second and the British fourth, according to Knight Frank.

Khan said: “As more and more Londoners struggle to get on the property ladder, there are real concerns about the prospect of a surge in the number of homes being bought by overseas investors.”