Sussex has come third in a league table of million-pound-plus home sales.

There were 105 houses worth £1 million and above sold in the final quarter of 2004 - only slightly behind Hampshire at 107 and the richest county for property sales, Surrey, at 170.

While many people in the county struggle to keep up with the cost of living, millionaires are enjoying a luxury lifestyle in trophy homes.

The list of house sales at the top end of the market shows while most people face hardship if the value of their home fails to rise with the cost of living, the slowing property market is not affecting sales at the top end.

A survey by Country Life magazine revealed prices for country houses are holding up at the million-pound-plus end of the market.

Figures from the Land Registry show the number of properties sold in England and Wales for more than £1 million rose in the final quarter of 2004 to 765, slightly more than the number sold in the final quarter of 2003.

The regional breakdown shows the continued dominance of the South East, followed by the South West.

By 2010, there will be 760,000 millionaires in Britain, a three-fold increase on 2001, says the Centre for Economics and Business Research.

More than 90 per cent of the increase can be attributed to property price inflation.

But with the threat of council tax and water bill increases looming for Sussex householders, many homeowners are struggling to stay in the area.

Mark Welton, a director of estate agents Mishon Mackay, said: "It is certainly becoming the case that people are being forced to leave Brighton and Hove because first-time buyers can't get on to the ladder.

"But the different ends of the market are very separate and it's only a very modest number of people that are owning and living in houses on that expensive level."

Alex Sheppard, senior negotiator at Strutt and Parker estate agents in Brighton, said: "I am not at all surprised that Sussex is one of the richest counties.

"There are a lot of nice places in this area and it is close to London. There are a lot of expensive properties around."

Strutt and Parker has a house on the market in Lewes Crescent, Kemp Town, for £3.3 million and another in Eastern Terrace, also in Kemp Town, for £3.25 million.

It has three other properties at more than a million.

One is for sale at £1.5 million in Withdean Road, Brighton, one for £1.35 million in Roedean Way and one for £1.3 million in Dyke Road Avenue.

Mr Sheppard said: "I remember when people could buy a house in Dyke Road Avenue for about £200,000 or £250,000 and now that house would sell for £1.5 million.

"A lot of people do move from London or other areas but we are dealing with a lot of local people who are just upsizing what they already have.

"They have all kinds of jobs and are from all walks of life but most people I would say work in professions like bankers, architects or surveyors.

"It's true that Brighton is becoming more exclusive. First-time buyers are finding it impossible to get on to the ladder, as it might cost £100,000 for a tiny one-bedroom flat."