Homebuyers in Sussex are standing firm in the wake of global conflict but could be hit when the aftershock ripples down from London, a new survey says.

House prices in the South East are virtually alone in Britain in remaining unaffected by fears of a recession, triggered by the terrorist attacks in New York and Washington.

Sales in other parts of the country have been slowing as buyers' confidence is sapped despite mortgage rates reaching their lowest figure for a generation.

Brighton and Hove's buoyant market has so far shrugged off the effects, according to the survey of 2,000 consumers commissioned by the Alliance & Leicester.

But the impact, including City job cuts and an end to big bonuses, has hit sellers in the capital.

Before the atrocities of September 11, 12 per cent of homeowners planned to move in the next 12 months. Now that figure is down to seven per cent.

Properties at the top end of the market are worst-hit.

The knock-on effect will be felt particularly on the coast where many City workers have their homes.

The slowdown has also touched first-time buyers and buy-to-let landlords who are waiting for the market to bottom out.

Chris Spratt, spokesman for regional branch of the Royal Institution of Chartered Surveyors, said: "Clearly it would be imprudent to ignore the potential effects of all of the international events which have taken place.

"The impact on the airline industry, with job losses at Gatwick, has a direct effect on our local economy.

"But I think the chemistry of low interest rates and low inflation is reflected in a kind of underlying confidence topped with caution.

"While everyone is noticing a slowing down in the market it's certainly not stagnant."