House prices in Sussex looked set to fall by the end of the year but double-digit growth would continue in northern regions, it was predicted yesterday.

Spread betting group IG Index said it expected the cost of property in London to fall by 7.3 per cent to an average of £198,700 by the end of 2003, while in the South-East, prices were set to drop by 1.7 per cent to £186,500.

But it predicted prices in the North would soar by 11.1 per cent to average £86,100 during the year while in Scotland they were expected to end 2003 10.4 per cent higher at £79,300.

In the South-West and East Anglia the group was expecting prices to creep up by 4.4 per cent while Northern Ireland looks set to grow by 7.5 per cent and prices in other regions to rise by about 8 to 9 per cent.

Meanwhile, Bradford & Bingley Estate Agents reported house prices in the South-East and London fell by 6 per cent during the six months to the end of February, driven by falls at the top end of the market.

In the South-West they were down by 5.8 per cent.

But during the same period the cost of a home in Yorkshire had soared by 15 per cent while in the East prices were 11 per cent higher. In the Midlands they were up by 9.8 per cent.

General manager Gary Verity said: "Our figures show the market has levelled following the almost frenzied activity we saw last year.

"But looking ahead we do not expect a significant fall."

The group said there had been a 5 per cent rise in the number of first-time buyers during the past six months, which it said would help keep the bottom of the market moving.