The slowdown in the property market has taken its toll on the top end of the market with a marked slowdown in the number of £1 million sales.

In the first half of 2005 there were 1,508 properties sold in Britain worth £1 million or more, according to figures from the Halifax. That represents a drop of 26 per cent.

Scotland bucked the downturn with an increase from 18 in the first half of 2004 to 40 in the first six months of this year.

"There has been a further significant increase in sales above the £1 million mark in Scotland, reflecting the ongoing strength of the market north of the border," said Martin Ellis, chief economist at the Halifax.

"Nationally the uppermost sector of the residential property market has held up relatively well with the 26 per cent fall in sales of million pound properties comparing with a 36 per cent decline in total house sales between the first halves of 2004 and 2005. "

The recent cut in interest rates has provided the property market with a lift but inflation figures have put off another reduction at least until next year.