An 18th Century manor house which was home to an art gallery has sold at auction for nearly £1 million.

The building, which was home to the Towner Art Gallery in Borough Lane, Eastbourne, was owned by Eastbourne Borough Council until the auction at the town hall last week.

The Grade II listed building was sold by Fox and Sons at their Sussex Land and Property Auction and went for nearly £200,000 over the guide price.

Peter Harris, a 41-year-old director of a planning and development company called SUSB Ltd, bought the property. It is unclear what he plans to do with it .

A spokesman for the auction agents said Fox and Sons was pleased with the result of the auction. He added: "After spirited and lengthy bidding from well over half a dozen keen buyers the Towner Art Gallery was sold for £950,000."

Fox and Sons auctioneer John Colman said: "It was a total surprise and just goes to show the benefit of putting unusual buildings to auction to fully test the level of demand. The price achieved was well above the pre-auction guide price of £750,000 to £850,000."

The council is moving the art gallery, currently in storage, to an £8.5million purpose-built cultural centre next to the Congress Theatre in Devonshire Park. It is due to open next spring.

A council spokesman said: "We are pleased the auction was successful and £800,000 from the successful sale is earmarked for the cultural centre which is now well under way. This will provide a new, exciting focus for the town as a new home for the collection and much more.

"The additional proceeds will be available, alongside other capital resources, to support the council's other investment priorities."

A council planning brief in April suggested possible uses for the manor house, including educational or office space, but favouring residential space.

Julia Cutty, the council's project co-ordinator for the cultural centre, said: "The council would like it to become a residential property again as it would be a beautiful place to live."

The Towner Art Gallery was named after John Chisholm Towner who died in 1920 leaving paintings from his collection and £5,000 for a gallery to be built. The council purchased the manor house in 1922 and it reopened as the Towner Art Gallery in 1923.