Long-delayed plans to build on the derelict White Admiral pub site at Lower Bevendean could collapse because of a row over a payment of almost £200,000.

The White Admiral pub closed in October 2000 despite a two-year campaign to save it and has become the target of vandals.

Now negotiations to build 23 affordable homes on the site in Taunton Road have hit a snag, with developers refusing to pay a £180,000 charge for the lease on the land.

Brighton and Hove City Council owns the freehold and is asking for the money to grant a new lease to estate agents Graves Jenkins and developers Wadefield.

Philip Graves, of Graves Jenkins, believes the cost is too high but the council insists it represents the best value for taxpayers and the future of the site.

Mr Graves said: "The council is always ready to condemn greedy landlords, yet here we have the council acting as a rather greedy landlord itself.

"The development will have to be abandoned and the site remain derelict if no agreement can be reached soon.

"The council is always going on about the need for affordable housing in the city. Yet here we have a development for social housing in a part of the city where there is a great demand. We have met all the criteria."

Moulsecoomb councillor Francis Tonks said: "It was a shame the pub was never very viable. I think people now want to see the site developed as soon as possible as long as there is adequate social housing and a community meeting room, which has been agreed."

A council spokeswoman said: "The figure of £180,000 for the lease was proposed in November, based on a part-social and part-private development.

"Since then a new proposal has been put forward to make the development 100 per cent affordable housing. Given the change in circumstances it is anticipated that further negotiations will begin shortly.

"The council is confident of achieving the best result for council tax payers, both in terms of much-needed housing and in securing a good price for the lease. The money will be ploughed back into council services."