Midland-based discount chain Poundland has been rapped by the advertising watchdog - but founder Steve Smith is still laughing all the way to the bank.

The 51-year-old, who started his career on his parents' market stall in Bilston, hopes to sell his sprawling mansion for an eye-watering £5.75 million.

The tycoon can even afford to cut the asking price by a cool £750,000 from the £6.5 million it was advertised for late last year.

Mr Smith said last July he had spent three or four years refurbishing the seven-bedroom home, set in 28 acres, after buying it for £2.2 million a decade ago.

"We have llamas - they're cheaper than lawnmowers," he said.

Mr Smith's Hammer Hill House, between Kidderminster and Bridgnorth in Shropshire, is being advertised on property website Rightmove.

Originally designed in 1923 by Sir Bertram Clough Williams-Ellis, who created the famous Portmeirion attraction in North Wales, it also boasts five reception rooms, a bespoke kitchen/breakfast room, an indoor pool complex and two gatehouse lodges.

Rightmove said the property "offers the ultimate in luxury living, having an exceptional level of high specification throughout".

The features include a "stunning drawing room with a sprung and lit dance floor, panelled walnut dining room with fitted serving area and a grand and imposing reception hall with a sweeping walnut staircase leading to the galleried landing".

Mr Smith hit the jackpot when he sold his share of Willenhall-based Poundland in 2002 for a reported £50 million.

He attributed his business acumen to his father Keith who ditched his job as a factory draughtsman to sell pens door to door when he realised it brought in more money. His father started a market stall before he bought his own cash and carry.

Poundland founder Steve Smith has put his house up for sale.
Poundland founder Steve Smith has put his house up for sale.

Mr Smith said in an interview last year: "I used to be straight out of school and on the stall, loading vans, going round houses knocking on doors to try to sell things.

"It was a way of making pocket money. I was always interested in making cash. I'd get round to doing my homework later. I was more interested in making cash. I'd get round to doing my homework later."

Mr Smith opened his own discount business in West Bromwich at the age of 16.

He recalled: "I sold everything from radios to soap, real Del Boy stuff. People used to come to us with job lots of stock that we'd buy and sell on.

"That's where the idea for Poundland came from. We had a box where we put things that fell out of the packaging.

"We would sell it for 10p an item. It was really popular. The box always sold out."

Poundland has just been told it can no longer claim that every item it sells costs £1 after the Advertising Standards Authority upheld complaints it sold DVDs and other "special" offers for more.

The poundland.co.uk website's About Us page said its "Everything for £1" claim was "the idea of our founders in 1990 and we're still true to that great vision today".

It went on: "We are very proud to offer you a single £1 price, that hasn't changed since we opened our first store."

But three complainants argued Poundland was misleading customers because it promoted products that cost more than £1 and sold DVDs and CDs for £2.

Poundland said it priced all its ordinary products at £1, but had introduced "special promotions" that offered customers who spent over a certain amount the chance to buy items that cost more than £1.

The cashier would offer customers the opportunity to buy the promotional item, such as a £3 gift set, while at the till, meaning they could not inadvertently select it while shopping around the store.

Poundland said the DVD promotion was a trial of a concession with a third party in a small number of stores which was segregated from all other £1 products and clearly priced at £2.

The ASA acknowledged it sold most of its products for £1 and more expensive items could only be bought from the DVD concession or through the conditional spend promotion.

But it said the website's claims referring to Poundland's £1 "idea of our founders" and "great vision" suggested every item sold by Poundland cost £1, regardless of whether or not they were sold via a concession arrangement or as a promotion.

The ASA ruled: "Therefore, because that was not the case, we concluded that the ad was misleading."

It said the ad must not appear again in its current form, adding: "We told Poundland that their future advertising must not state or suggest every item they sold cost £1."

In October, the ASA banned Poundworld's "everything £1" claim after a customer spotted "special" items on sale for £3 and £8.99.

Poundland founder Steve Smith has put his house up for sale.
Poundland founder Steve Smith has put his house up for sale.