Residents of a housing project set up by former boxer Chris Eubank have spoken of their disappointment at having to leave their homes.

St Anne's House in Buckingham Road, Brighton, was sold to MS Investments for more than £2 million.

More than 15 vulnerable ex-homeless people have already been forced to leave and many more occupants of the 69 flats have to go at the end of October.

They are being forced to move out by a substantial increase in rent which cannot be matched by housing benefit.

For Stuart Mason, 28, and Gary Norton, 25, it is especially frustrating because they say the project had offered them a chance to gain a secure footing in society.

Stuart said: "Over the years, this place has served as a stepping stone for a lot of people.

"I was homeless when I was offered a place here. I've only been here for five months and I don't feel like I've fully received the benefits of what the project could offer.

"It takes time to rehabilitate yourself back into society after you've been homeless. There are also people in here with disabilities and on invalidity benefits. It could be very damaging to just send them packing."

The project, which was started by Eubank when he bought the property in 1995, was one of the first in Brighton to help the homeless. It included initiatives to encourage them to save money.

Gary said: "You have to pay £2 a week to the letting agency. It was a very good scheme because when people moved out they would get their savings back, which would often pay the deposit on their new accommodation.

"I thought it was a great idea but, like Stuart, I've only been here a short while and have saved just £32. It wouldn't even pay the estate agent's administration fees."

A spokeswoman for Chris Eubank said the former world champion was disappointed by the news.

She said: "He bought the property to help give people a better start in life and to overcome disadvantage.

"He intended to get it up and running and then hand it over to a housing association after two years.

"In the event, he kept it running for five years and in that time he has offered it to Brighton and Hove Council, who couldn't find funds to purchase it.

"He also offered it to two housing associations, yet nobody would take it on. Finally a private sector investor has come forward and bought the property."

John Holmstrom of Brighton Housing Trust said the situation reflected a much larger problem for the homeless - that housing benefit could not keep pace with market forces.

MS Investments director Ivor Sorokin said: "As tenants leave we will carry out an extensive programme of refurbishment. Eventually all the flats will be privately rented studios.

"The council placed a planning condition on the building that meant it had to be used for housing for at least ten years. There was no condition, however, it would have to be used for social housing."