With its commanding countryside views, famous polo fields and rich history, Midhurst should be in the dictionary to define the word beautiful.

The market town has proved such a lure for house buyers prices have rocketed by 223 per cent in eight years.

According to a survey by the Halifax bank, this makes it the scene of the strongest house price growth of all the UK's market towns, with average prices now more than £279,000. The average price in the UK is £145,000.

The West Sussex town, home to Lord Cowdray, also offers residents some of the best quality of life in Britain, according to a survey published by Country Life magazine.

It won praise for being "an island of tranquillity away from the transport problems of the South-East".

It scored highly on local history for sites such as the Cowdray ruins and Midhurst Grammar School, founded in 1672 with HG Wells among its former pupils.

Cowdray Park, dubbed the home of polo, helped the town score well on sporting amenities, while in terms of location is within an area of outstanding natural beauty.

Midhurst has an ageing population with plenty of surplus cash so development tends to be of higher-priced properties. This means fewer young people are able to get on to the property ladder.

Glenn Jones, of the Midhurst Resource Centre, said his daughter recently bought a house in Carlisle for £60,000, something she could only dream of doing in Midhurst.

He said: "That type of money wouldn't even buy you a garage in Midhurst.

"There is an influx of people looking to retire to Midhurst who don't mind spending £350,000 on a flat.

"But although we have low unemployment, the local economy is heavily based on the care industry, which is not highly paid, and people are finding it difficult to find homes. Therefore we need to be thinking more about providing affordable housing to help those not earning vast amounts get on to the property ladder."

James Sawers, chairman of Midhurst Chamber of Commerce, believes the rise in house prices is partly due to Londoners flocking to West Sussex.

He said: "They are obviously looking at what they can buy in London and what their money would get them elsewhere and finding that their money is better spent outside the capital.

"But I'm not surprised by the figures relating to Midhurst. It would just appear to be a sign of the times in housing. Midhurst has a lot going for it. It has a good range of shopping facilities without being a huge town or city and it has got a relaxed pace of life."

Two other Sussex towns featured in the Halifax's list of the top 20 most expensive market towns to buy a home. In both Lewes and Chichester the average cost of a home exceeds £230,000.

But Midhurst recorded the biggest jump of all, with an average house price of £86,560 in 1995 rising to £279,840 last year.

Prices in Hailsham leapt 184 per cent from £64,231 to £182,564 in the same period, while in Horsham they rose 165 per cent, from £83,141 to £220,563.

In Lewes, prices jumped 172 per cent between 1995 and 2003, with the average house costing £234,873 in 2003 compared with £86,334 eight years before.

Midhurst came second to Beaconsfield in the list of most expensive market towns for home buyers - the average property price is an incredible £550,495 in the Buckinghamshire town .

Halifax, which analysed the price of homes in 112 English market towns with a population of between 3,000 and 30,000, said the cost of a home had at least doubled in all but four since 1995.

Two-thirds had average house prices higher than the county average, while in the majority of towns property was also more expensive than the regional average.

Overall, 12 towns have experienced price rises of at least 200 per cent since 1995, all but one of which were in the South-East or South-West. Outside the South, the biggest increase was seen in Bingham, Nottinghamshire - 194 per cent - followed by Lymm in Cheshire at 188 per cent.

Halifax chief economist Martin Ellis said: "Market towns are usually very attractive places to live.

"This is reflected in the majority having higher property prices than their surrounding counties and the more than doubling of average prices since 1995 in all but a few exceptions."

The figures emerged as research showed first-time buyers were considering taking second jobs, buying with friends or moving to cheaper areas in a bid to get on to the property ladder.

Even though the average home in the UK now costs £145,000, 74 per cent of people who rent from a private landlord or live with their parents still plan to buy their own home.

Almost a quarter of people said they would consider taking on a second job to be able to buy a home, while 17 per cent would buy a property that needed renovating and 16 per cent would consider buying a house with friends.

The Nationwide Building Society found 14 per cent of people would try to borrow their deposit from their family, 11 per cent would move to an area where they did not know anybody if it enabled them to get on to the property ladder and ten per cent would take in a lodger to help pay their mortgage.

Jeremy del Strother, divisional director at Nationwide, said: "Affordability for first-time buyers is becoming a bigger issue because salary increases are not keeping pace with rising property prices. People are finding new ways of getting on the property ladder by seeking to boost their income, by making significant compromises on location or by deciding to club together with friends and family.

"As our survey shows, some borrowers will be tempted to borrow their deposit and take other steps in order to get on to the property ladder. However, young borrowers should not overstretch themselves in the rush to buy."

People living in London are most likely to consider buying a property with friends, with 21 per cent saying they would do this.