Traders being evicted from a city centre site to make way for a £150 million "urban village" face being squeezed out of Brighton.

The businesses on the run-down site in New England Street which backs on to the station say they cannot afford soaring rents elsewhere in the city centre.

The shops - furniture warehouses and car dealers, some of which have been open since the locomotive works closed in the Sixties - must find new premises by the end of the year.

A Sainsbury's superstore will be the centrepiece of the controversial new development, which will also feature two hotels, a language school, offices and homes for 1,000.

Car dealer Ben Blankson said: "We've been trying to find a place but there's no chance. Even out in Shoreham and Worthing I haven't found anything.

"We knew we were all going to have to go at some point but we're still in the dark about exactly when it will be.

"I suppose a supermarket will benefit the town job-wise but it's not really needed. It will be bad for local small businesses - and the traffic is terrible as it is."

John Fletcher, of furniture shop Martha's Barn, said: "We're on the fringes of the city centre here but to go into town and rent the same sort of space would cost at least 15 times as much.

"We always knew the development was on the cards but there was always the question of whether it would actually happen.

"Then one day the rent bill suddenly said we were paying rent to Sainsbury's instead of Railtrack so we realised it would be soon.

"We've got agents looking but we've found nothing yet. We may even have to go as far out as Lewes.

"There's no way I'm giving up this place until the bulldozers are coming down the street."

Another car trader said: "Land is at such a premium. It would have been nice if they could build a children's play area but money speaks louder than words. I used to play here as a kid and it has been derelict for as long as I can remember so it's good that something is being done at last."

Bernard Clifford, who runs a car parts dealership on the site, said: "We're going to be hard pushed to find the 10,000 sq ft we need in Brighton.

"It's a shame to knock down such a nice, solid building but we've known for a long time we would one day have to go."

John Holden, of John's Camping, has traded since 1964 and hopes to stay in the area. He said: "We need the space and the parking. Rents are very high but I'm certain we'll be around somewhere."

The Government gave its approval for the scheme in February despite widespread opposition.

Project manager Chris Gilbert, of developer QED, said his company had been meeting traders to help them find new premises. He said: "We're doing everything we can to help.

"We've got the agents to find out what kind of premises they want and I've offered to relocated them in the new development as well. They've had these premises at below market rent for a number of years."