Last updated 05:28, Friday, 16 May 2008

The number of million-pound properties sold across the UK rose by more than a third in 2007, research has revealed.

On the up: Halifax Estate Agents, found that 8,257 properties costing a £1 million or more were sold last year, a 36 per cent increase on the 2006 figure of 6,057

The research, from Halifax Estate Agents, found that 8,257 properties costing a £1 million or more were sold last year, a 36 per cent increase on the 2006 figure of 6,057.

The rise comes despite fears across business institutions of a slowdown in the property market.

More than three-quarters of the sales took place in London and the South East – traditionally the wealthiest region in the UK.

The London areas of Kensington and Chelsea accounted for the largest number of million-pound property sales with 961 in total.

Outside of London, Elmbridge in Surrey recorded the greatest number of million pound sales with 335.

In the north, Edinburgh recorded the highest amount of sales with 148 properties changing hands for more than £1 million.

But Wales, with just 19 property sales over the £1 million mark, had the smallest figure.

The rise in the sale of million pound homes contrasts with a nine per cent fall in property sales over the year.

But despite the huge rise in the number of £1 million homes sold, they still only accounted for just 0.6 per cent of all property sales in 2007.

Gordon Edwards, managing director of Halifax Estate Agents, said: “Although there has been a marked increase in the number of million-pound property sales over the past decade, a small number of local authority areas in London continue to account for the significant majority of £1 million sales.

“Nonetheless, London’s share of all million-pound property sales has declined over the past 10 years, with a number of new million-pound property clusters appearing in the South East around places like Elmbridge and South Buckinghamshire,” he added.