It could potentially be one of the most desirable addresses in Sussex.

But uncertainty hangs over the future of a derelict building site overlooks Brighton's historic Royal Pavilion.

The plot of land, on the corner of Edward Street and Grand Parade, was bought by a London property firm two years ago.

Since then, vandals have scarred the site with graffiti and rubbish has been dumped behind 15ft advertising hoardings.

Tourists from all over the world are horrified by the run down state of the site, just yards from the Prince Regent's Oriental-style palace.

The developer, Park Lane Properties, has planning permission to build a seven-storey block of 33 flats, with six car spaces, on the site.

Geoffrey Theobald, Conservative opposition leader on Brighton and Hove Council, is demanding urgent action to remove the eyesore.

He said: "It is such a prominent site, right opposite the Royal Pavilion, and it looks dreadful - a disgrace. "I cannot understand why the buyers haven't developed it. Property prices are high. It has been an eyesore for far too long."

Councillor Theobald is writing to council planners to find out what is happening with the site.

He said: "You cannot make people develop their own land but we can ask when they intend to get on with it."

Tim Hardwicke, who works for the business department of Brighton property agents Stiles, Harold, Williams, said: "We haven't spoken to Park Lane Properties for a year and a half.

"But we have heard on the grapevine that they were going down the planning road to get residential development on the site."

A Brighton and Hove Council spokeswoman said planning permission was given in October 1998. She said: "There is no reason why they can't start building. I don't know why they haven't started."

Nobody from Park Lane Properties was available for comment.