House prices across Brighton and Hove leapt dramatically in the latter part of 2009.

Latest figures show the average property in the city rose to £276,676 during the fourth quarter of the year, a jump of 5% in just three months.

According to Nationwide the market has rebounded from a year ago, with an average property now 3% higher than it was a year ago.

However, estate agents warned that the outlook for 2010 is still unclear and there is no guarantee that prices will continue to rise.

In the rest of Sussex prices rose by 2% in the past 12 months.

In East Sussex, Nationwide said the average property now costs £208,324 while the figure for West Sussex was £223,529.

Across the UK the average rise in December was 0.4%, bringing the average property price to £162,103 – 9% above last February's low of £147,746 but still 12.2% below the October 2007 peak.

Phil Graves, of Brighton-based Graves Jenkins estate agents, said one of the reasons for the recent jump was the property market became much clearer during the latter half of 2009.

He said: “Quite wisely the banks have not taken to many repossessions and they have been far more approachable than in the past to people who need to alter their mortgage repayment structure.”

The banks' flexibility, along with the continued availability of cheap money through low interest rates, have combined to attract more people into the market, including cash and first-time buyers.