The number of local communities that boasts million-pound homes has doubled in the past five years, with nearly a third of the country now living near a property millionaire.

Halifax said that there were sales at £1 million or above in 30 per cent of the postcode districts in England and Wales in 2006. That figure was up from 16 per cent in 2001.

The number of new property millionaires has risen dramatically. Some 7,076 homes changed hands for seven-figure sums last year, almost double the number in 2005 and up from just over 2,000 five years before. The rise is most striking beyond the traditional hotspots of southern England. The number of million-pound sales in the North totalled 1,055 in 2006, compared with only 224 in 2004, Halifax said.

The research comes in the wake of a slew of data that suggests that the difficulty faced by first-time buyers of getting a foothold on the property ladder may be starting to slow the market. House prices have nearly tripled over the past ten years.

Today’s findings, based on Land Registry data, reflect the surge in demand for luxury properties as those receiving City bonuses cash-in. The London market is also being underpinned by an influx of wealthy international buyers, eager to secure a stake in UK real estate.

Colin Kemp, managing director at Halifax Estate Agents, said: “Million-pound house sales are not exclusive to London and the South East. The North West, in particular, has seen a rise in sales over £1 million, especially in exclusive villages which are within commuting distance of Manchester.”

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