The city of Brighton and Hove has the fastest falling property prices in Britain.

Hometrack, which monitors the housing market, has revealed that prices in Brighton and Hove dropped two per cent in September compared with a national fall of just 0.1 per cent.

Estate agents were putting a positive spin on the news yesterday despite worries that that the figures could signal the start of a downturn.

Many put the change down to sellers becoming more realistic about the prices their properties will fetch.

They welcomed the shift, saying it meant homes would sell more quickly and buyers would be able to negotiate a more reasonable deal.

David Flack, manager of Bonett's estate agent in St George's Road, Kemp Town, said: "Prices are down to much more sensible levels. Prior even to three months ago the market was struggling somewhat.

"There has been a long slow wake up for vendors to get their properties to sensible levels where they actually sell."

Mr Flack, a member of the National Association of Estate Agents, has worked in the industry in Brighton and Hove for 24 years.

He said: "Brighton has suffered because we get a lot of Londoners moving here who have struggled to sell.

"Now we are finding first-time buyers are coming back. We've had the busiest August on record. We are feeling much more positive."

Paul Probert, sales negotiator for Massey Property Services, which has five offices in Brighton and Hove, said: "There are more properties than good buyers at the moment.

"Anyone looking to sell needs to be in line with the competition.

"It is still a busy market but stuff is going for a bit less than six months or a year ago.

"If people are reasonable about what they want, it is a very good time to buy."

Meanwhile a survey by FindaProperty.com has revealed that, despite high house prices, 63 per cent of people in Brighton and Hove wouldn't want to live anywhere else in the world.

The Brighton-based company questioned 200 passers-by in the city centre.

Of these, 46 per cent felt house prices in the area were too high and 45 per cent said they'd be willing to stay with their parents or a friend to save up for a property.