The dramatic rise in house prices in Sussex which saw the price of detached homes in Brighton and Hove rise by £65,000 last year is slowing down.

Estate agents agree prices are levelling out and in some cases falling slightly.

Up to two months ago, sellers were putting their houses on the market and getting the price they wanted.

Now the market has moved in the direction of the purchaser.

The Royal Institute of Chartered Surveyors has reported a drop in the percentage of surveyors recording price increases.

It reports a 15 per cent drop in the number of its members in the South East reporting price increases.

The report says: "New inquiries have fallen in recent months, while surveyors expect a slight reduction in both prices and sales in the coming three months."

Phil Graves, of Graves Jenkins estate agents and property developers, which has offices in Brighton and Crawley said: "In the past few weeks the bargaining power has slightly moved in the direction of the purchaser.

"Properties are selling well, but not so quickly. There has been a slight fall in some cases, but fears of a crash are totally unfounded.

"There are some good interest rate bargains for borrowers around and that will ensure the buoyant property market in Sussex continues."

In other parts of the country, in the North West and East Midlands, surveyors are reporting price rises.

First-time buyers, who last year were desperate to get their foot on the housing ladder before prices rose further, are now holding back, saving more and staying in rented accommodation before rushing into buying their first properties.

David Goldin, Southern Regional Director of estate agents Fox and Sons, said: "We are beginning to see a levelling-off of prices. Sellers are prepared to negotiate. They are beginning to accept slight price reductions.

"It is all down to a lack of urgency in the market. Sales are now taking between 12 and 14 weeks, whereas this time last year, they were taking four to six weeks."