Mortgage applications for properties sold above a quarter of a million pounds rose by 9% in 2012 on the previous year. The figure was also 28% higher than 2009.

By contrast, the average house price in February was £163,600, according to the latest Halifax house price index.

Halifax Intermediaries head of sales Ian Wilson said: “High value mortgages can be quite complex, with borrowers having multi-faceted income streams, with bonuses, business profits and investment income often forming part of the overall income picture.

“Due to the nature of these types of cases, lenders need to be flexible and understanding of the requirements of borrowers and provide a knowledgeable specialist team to support them.”

More Londoners bought properties in this price bracket than in 2007, when just over half forked out £250,000 or more. In the South East, too, a greater proportion of house buyers paid over this figure compared to six years ago.

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However, less than one on ten of homes in the North of England were sold for £250,000 and only 5% of homes in Northern Ireland.

SPF Private Clients chief executive Mark Harris said “The North South divide in terms of property prices and in terms of the economy and property prices has probably never been greater.

“You would really struggle to find a property for under £250,000 in London.”

The average loan size of his clients in 2013 was over £750,000 and roughly £500,000 for first-time buyers, he said.