Last week, George Osborne urged Chinese investors to fund £24bn worth of development projects in the UK.

This includes a £730m residential project in Manchester providing 2,000 residential units, a £400m mixed-use project in Leeds and a £40m commercial and office development in Sheffield.

The Chancellor said: “We are building an ever closer relationship with China – it’s a partnership that is set to unleash growth and help regions like Xinjiang where we know investment can make a real difference, as well as unleash new growth back home, in places like our own Northern Powerhouse.”

Kevin McCabe, Chairman of the Scarborough Group, which will lead the three redevelopment projects as well as receiving a large investment from the Hualing Industry and Trade Group, said: “As a family business with its roots in the North of England, we are now very proud to bring our partners in China to the UK to invest in our great Northern cities and to accelerate the development of our major projects in Manchester, Leeds and Sheffield.”

“We are delighted to join the Chancellor on this historic visit, moreover, we appreciate the invaluable support of the UK government in helping us to create closer global business links.”

However, DFT asked if overseas investment can really benefit the UK and in particular the housing market?

Bob Sturges, Head of Communications at Omni Capital, said overseas investors were attracted to the UK property market for a number of reasons.

“Chief among these is our 'safe haven' status, certainty of title, cultural and educational facilities, and, perhaps surprisingly, the relative value offered by high-end real estate,” said Bob.

"This is unlikely to change in the near future, and so it is entirely understandable why specialist financiers will always be on hand to assist.”

Bob added that although it is important to remember that overseas investment brings jobs and wealth, it is also highly concentrated on prime real estate.

“Whilst offering great headlines to commentators of a certain persuasion, the actual impact of this on prices and supply across the mainstream market is barely noticeable,” added Bob.

Bob believes that what the housing sector requires is a spectrum of lenders catering to different needs - but warns that this is just the start.

“Funding - whether from the UK or overseas - will not of itself provide the answer to this country's housing problems,” added Bob.

“That will only come when a broad range of factors - including population growth, demographics and supply factors - are comprehensively addressed.

“But I wouldn't recommend you hold your breath."