Designers are hoping luxury apartments will attract the jet set to a sleepy Sussex port.

The 33 homes are part of the latest step in the regeneration of Newhaven.

There has been a surge in homes being built near the harbour, attracting people priced out of Brighton and Hove but craving seaside living.

The show home for Mariners Wharf opens next month and residents hope this and other developments in the town can help increase business in the town centre.

Judith Ost, a town and district councillor, said: "People are coming here for two reasons, both because houses are cheaper than Brighton and the new developments are attracting people who want that sort of living.

"There are more developments to come. The second phase of the West Quay has had planning permission go through and, as far as I'm aware, building is imminent.

"There is also a planning brief for the Railway Quay on the eastern bank of the river.

"House prices are rising faster than elsewhere locally. Whether that's the Victorian houses as well or just because of the more expensive properties, I don't know.

"It's good on the one hand because the new people might have a bit more spending money, which could help the town centre.

"But it makes it difficult for local youngsters to buy a home."

Estate agents say property prices have risen by 300 per cent since 1998 and Mrs Ost added the town was becoming a bit of a Mecca for arty types.

Mariners Wharf, near Newhaven Fort, is being built by Persimmon Homes.

Regional managing director Edward Owens said: "Mariners Wharf is perfect for a host of purchasers including those who are looking for a retreat from busy everyday life. Various properties offer stunning waterfront views with some apartments coming complete with a garage large enough to house a small boat.

"With excellent road access to nearby Brighton and Hove, there is a host of shops, bars and restaurants on offer, making it an ideal holiday location and a fantastic investment opportunity for those who would like to rent it out when they are not using it.

"We are currently running a host of incentives at the development for those who complete in June, which means not only can they save money but also spend this year's relaxing summer holiday in their very own dream home."

Prices at the development start at £169,995 for a two-bedroom apartment.

For details, call Persimmon Homes South-East on 01932 350 555 or visit www.persimmonhomes.com