Teachers, health workers and police are to be helped to buy homes in Sussex with 265 equity loans worth £10,000.

The cash has been allocated from the Starter Home initiative - which helps key workers to buy their first flat or house in property "hotspots".

It aims to tackle recruitment problems in the public services in Sussex.

These have been particularly acute in hospitals, leading to staff shortages.

Bids are now being invited for registered social landlords, local authorities or employers to administer the scheme.

Housing Minister Lord Falconer said: "Unlocking the housing market for dedicated and essential staff like nurses and teachers will help ensure they are not priced out of their chosen professions.

"This kind of initiative is vital to secure the future of our public services and attract excellent staff.

"High house prices in some parts of the country have added to recruitment and retention difficulties."

Ministers said the loans for 232 health workers and teachers would be targeted at Brighton and Hove, Chichester, Crawley and Mid Sussex.

A further 33 loans will be made available for police officers.

The loans come in addition to 279 Starter Home places announced across the county last September.

Under the equity loan scheme, low-paid key workers can defer the burden of having to make monthly repayments until they resell their property.

They repay an equivalent percentage of the cost - so, if the original loan was worth ten per cent of the purchase price, they pay back ten per cent of the proceeds from its sale.

This sum may then be recycled by the scheme manager as a further equity loan to help another key worker buy a home.

Loans will be offered to people with a personal or joint income below £35,000 and applicants must be able to meet certain other criteria.