A bid for the property was accepted by the trustee from a solicitor who agreed to pay £1.25m, the original asking price, Accountancy Age has learned.

The sale of the house signals the end of a battle between the trustee and Hamilton's wife Christine, who argued the house was hers, therefore not part of her husband's assets.

The trustee is preparing to negotiate ownership of the household furnishings which are understood to include a life-size cardboard cutout of Margaret Thatcher. The trustee is waiting for Christine Hamilton to make a bid for the furniture, as Neil, the bankrupt, is not entitled to it at all.

Neil Hamilton was declared bankrupt in May 2001 after a failed libel lawsuit against Mohammed Al-Fayed in the cash for questions scandal.

Louise Brittain, a partner at Baker Tilly, was appointed trustee. Since the bankruptcy, the Hamiltons' television appearances have dramatically increased, with the couple currently regularly featuring in the current series of the Harry Hill show.

The trustee was unable to comment on the case.