The controversial King Alfred development is hanging by a thread today after the withdrawal of its financial backers.

Dutch bank ING has decided to pull out of the £290 million Hove scheme because of the shaky state of the financial and housing markets.

Karis, which has been leading the project on the ground, is now believed to be looking for alternative sources of funding.

The developer has until November to secure a new financier before its agreement with Brighton and Hove City Council runs out.

The Hove seafront scheme could now be redesigned and may need to receive planning permission again.

The Argus first revealed the scheme was in danger of floundering last month after ING and Karis launched a review.