The housing boom has reached two estates once branded the poorest parts of Brighton.

Estate agents said the average price of a well-maintained, two-bedroom, ex-council house in Moulsecoomb was between £85,000 and £90,000.

Three-bedroom semis in good condition were being sold for up to £140,000 as demand for property outstripped supply.

Many people who are cashing in bought their houses from the council at knock-down prices under the former Tory government's Right-To-Buy legislation.

The trend was being also reflected in Whitehawk.

But there were fears skilled workers on low or moderate incomes were being priced out of the market.

Francis Tonks, city councillor for Moulsecoomb, said: "It amazes me houses are fetching that amount of money but that is the market I suppose. It is pricing out essential workers like teachers, social services staff and police.

"It is a real problem attracting people who are on average money, the people we need to run public services, to our city.

Simon Fanshawe, who spearheaded the campaign to turn Brighton and Hove into a city, said it was fantastic news for those trying to sell their homes but he warned it could damage the area's prosperity.

Mr Fanshawe said: "We are enjoying the benefits but we must also apply ourselves to dealing with the negative consequences.

"When house prices go up, that forces people with skills out of the city. That means businesses find it harder to recruit which results in them being unable to expand.

"That in turn means the growth in prosperity will ultimately be halted. It's a vicious circle."

He added: "I think it is great that people are confident about moving into Moulsecoomb and Whitehawk, but it can only be good if it doesn't squeeze out the poor."

Gary Pickard, president of the Brighton and Hove Auctioneers and Estate Agents' Association, said: "If the net effect of property price rises throughout the city is such that it raises the profile of private ownership in places like Moulsecoomb and Whitehawk than that can be no bad thing."

The city council expects almost 33,000 people will be unable to afford to buy a home in Brighton and Hove in the next five years and 27,000 new low-cost homes will be needed during the same period.