Overseas property buyers appear to be keen to transfer money to the UK and invest in London.
According to Zoopla.co.uk, demand for prime property in the capital is particularly strong among investors in other countries.
This, it said, is pushing up house prices in many parts of the city. Indeed, figures showed interest among foreign nationals has helped average property values exceed £1 million in areas such as Kensington, Chelsea, Knightsbridge and Notting Hill.
Nicholas Leeming, Zoopla.co.uk's business development director, commented: "International demand for prime properties in the nation's premium postcodes has boosted prices in London and the south-east and further widened the gap between the haves and have nots."
Indeed, he said the top end of the UK's housing market has enjoyed a "good run over the past year" - a period in which many homeowners have seen a drop in house prices and the market grind to a halt.
Average house prices in Kensington have gone up by more than £90,000 during the last 12 months to £1.87 million - an increase of five per cent.
Meanwhile, a typical residence in Knightsbridge can cost about £1.4 million and the average house in Notting Hill is worth approximately £1.3 million.
Towns located in nearby counties were also found to have benefited from this trend, including Cobham, Guildford, Leatherhead and Virginia Water in Surrey. Similarly, the Buckinghamshire towns of Beaconsfield, Chalfont St Giles and Gerrards Cross were said to have exceptionally high average house prices.
This comes after Liam Bailey of Knight Frank predicted that the UK's recent slip back into recession would do little to dent the country's appeal among real estate investors overseas. He said this is because the fundamentals that first drew people from other nations to hotspots such as London are still in place, despite the negative economic figures.