Million-pound homes make up less than 1% of the market

Most of the 1,938 homes sold were in London, but areas including Nottingham, Coventry, Dover and Barnsley recorded their first �1m houses, Halifax said.

There has also been a 50% rise in the number of �2m homes sold, the bank's research showed.

But million-pound sales still make up only a fraction of the housing market, which appears to be slowing.

The very top end of the housing market has strengthened Martin Ellis Halifax chief economist

The number of homes selling for more than �1m in the first six months of 2004 represented a rise of 61% on the same period last year.

Two-thirds of those were sold in the capital, with the borough of Kensington and Chelsea remaining the country's million-pound property hotspot.

But other areas like West Lothian, Teesdale and North Lincolnshire became new members of the �1m club in 2004.

Top end

There were also 308 properties sold for �2m or more.

Halifax chief economist Martin Ellis said: "The number or properties sold for over a �1m resumed its strong upward trend in the first six months of 2004 following a modest decline last year.

"While a small number of areas in London continue to account for the overwhelming majority of sales, the incidence of properties valued above the �1m threshold continues to spread across the country.

"The very top end of the housing market has strengthened."

But the BBC's business reporter Hywel Jones said million-pound houses are just a tiny fraction of a market that is showing signs of a slowdown.

They made up just 0.3% of all sales in Britain in the first six months of 2004.