There was a 36 per cent increase in the number of million-pound properties sold in the UK in 2007.

A new report from Halifax Estate Agents has revealed that large annual increase.

The total number of million-pound properties sold last year stood at 8,257, with 7,914 sold in England and Wales.

Of all the million-pound properties sold throughout the UK, 78 per cent were in London and the south-east.

Gordon Edwards, managing director at Halifax Estate Agents, said that although the majority of these properties are located in a small area, London is slowly losing its dominance of the market.

"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," he commented.

"Nonetheless, London''s share of all million pound property sales has declined over the past ten years, with a number of million pound property clusters appearing in the south-east around places like Elmbridge and South Buckinghamshire," added Mr Edwards.