East Sussex is bucking the national housing slump with the fastest price rises in the UK.

The prospect of war in Iraq has done nothing to dampen the enthusiasm of the county's househunters, who have seen the cost of an average home rise £1,377 since January.

Prices rose by 0.9 per cent in East Sussex whereas the rest of the UK continued a nine-month decline in the property market, with a rise of just 0.1 per cent.

The cheapest houses continue to prop up the market, with areas like Eastbourne, Bexhill and Hastings seeing the biggest increases in value.

A spokesman for Fox and Sons in Eastbourne said: "We are very, very busy and there's certainly no sign of a slowdown here.

"There has been a steady move of people from Brighton and Hove for the past 18 months."

Areas to the east of the county, which were left out at the beginning of the property boom, are now catching up as families forced out of other areas start moving in.

Estate agents have seen a large increase in viewings and sales of homes under £250,000.

One reason is thought to be the "migration" of househunters from places like Brighton and Hove.

As Londoners, many of whom were priced out of their own homes, took advantage of cheaper homes by the sea, they pushed out the poorer locals.

At the peak of the property boom last summer, it was estimated eight out of ten Brighton buyers were from London. The trend has now come full-circle.

First-time buyers from Brighton and Hove are moving out of the city in a bid to get on the first rung of the property ladder and they are pushing up house prices in the cheapest parts of the county.

The price of an average flat in Eastbourne is £85,000, compared with £133,000 in Brighton and Hove.

A buyer in Eastbourne would need a wage of £21,250 for a standard mortgage at four-times salary. In Brighton and Hove, they would need £33,250.

The long-term future of the housing market still looks like giving cause for concern if there is a war with Iraq.

Latest figures released by property website Hometrack show East Sussex to be the exception rather than the rule. Its economist John Wrigglesworth said he did not expect any significant increases until an end to the conflict was apparent.

Fox and Sons' spokesman said: "I think it would be mad to say a war with Iraq won't affect house prices."