House prices are stagnant and falling in Sussex with some homes in Brighton and Hove dropping by more than ten per cent, new figures reveal.

There has even been a fall in the prices of some homes in East Sussex, including Hastings, which has been regarded as a property hot spot in recent years.

For the first time in five years, the average price increase over all sectors of the Sussex property market as recorded by the Land Registry, including the buoyant one and two-bedroom flat sector, has been less than four per cent.

Flat-hunters and first-time buyers are keeping the Sussex property market alive as they jump on the property ladder.

Land Registry figures show a marked decrease in the number of people buying and selling homes in the past year.

There were 300 fewer completed sales in Brighton and Hove and 700 fewer in both East and West Sussex.

Figures from the registry are considered the most accurate as they are based on the exact record of the prices of houses sold and recorded by the Government body.

Phil Graves, spokesman for the Brighton and Hove Estate Agents' Association, said: "There has been a slowdown in the property market in the past year and these figures are reflective of this.

"I can't see prices falling much lower.

"I believe the market has reached its lowest ebb for five years and once the festive season is over there will be an increase in activity in 2006.

"I am surprised at the fall in prices for detached homes in Brighton and Hove but there is still demand for flats in the city.

"I believe the market has now bottomed out and things will improve in the spring.

"Sales may be down but there are a lot of genuine buyers out there"

The Land Registry figures show the price of a detached house in East Sussex rose from £311,391 to £324,615 during the third quarter of the year, compared with the same quarter in 2004.

In the same part of the county, the price of a semi rose from £195,318 to £204,650 but prices of terraced houses fell from £167,496 to £167,054.

Flats and maisonettes increased from £124,905 to £130,988.

The most dramatic fall was in the price of detached houses in Brighton and Hove. They are down from £404,733 to £362,905 in the past year, a drop of 10.3 per cent.

There was also a fall in the price of semi-detached houses in the city, down from £248,807 to £244,190.

Terraced houses in Brighton and Hove increased from £241,356 to £244,842 and flats and maisonettes from £163,019 to £167, 516.

West Sussex saw marginal price increases with detached homes increasing from £359,497 to £363,456, semis from £221,419 to £221, 628, terraced houses from £182,689 to £183,729 and flats and maisonettes from £140,863 to £143,240.