A new survey claims house prices in parts of Sussex are beginning to fall following the terrorist attacks in America.

The figures released today show house prices have stalled in West Sussex and fallen by 0.1 per cent in East Sussex.

Hometrack, an online property information provider, has collected figures from estate agents across the county which indicate the end of the property boom may be in sight.

This month's index records a marked slowdown in both price rises and activity in October, marking a stalling in the rising trend in house prices seen over the past five years.

The greatest decline is at the top end of the market, with affluent parts of London and the South-East most affected.

John Wriglesworth, housing economist at Hometrack, said: "I think recession and terrorism worries have caused a pause or wobble in the housing market. But it is a stall, not a fall.

"We are not heading for Armageddon in the housing market. Housing is showing quite a lot of resistance to the terrorist atrocities."

He said fundamental factors which determine the health of the housing market remained positive, with mortgage rates at their lowest for almost 50 years, low unemployment and household incomes continuing to grow.

He added: "We are retaining our forecast of five per cent growth in prices for next year."

Andrew Novak, branch manager of Bridges estate agents in Brighton, said: "Prices are not falling, they're just more realistic."