Sluggish sales on a Rustington development have led to work being halted on another flats site being built by the same company in East Preston, while a scheme in Angmering originally built for older people could now be opened up to younger purchasers because only one property has sold.

And in Littlehampton, two blocks intended for key workers are being made available more widely to people on the council waiting list after just one apartment had a buyer.

Estate agents and developers are blaming the slowdown on banks and building societies cutting back on new mortgages, especially first-time buyers.

One Littlehampton estate agent said: "We have been living in a world where banks have been relatively loose with their cash. That has started to change, and more people are not getting mortgages."

Another, Tim Franklin, of Molica Franklin, which has offices in Littlehampton and Rustington, also put the blame at the doors of the lenders.

"In the last six months we have seen a down turn of around 30 to 35 per cent in the number of people able to proceed with purchases."

MJH Executive Homes, based in Worthing, has halted work on 21 luxury apartments in Manor Road, East Preston.

The company's Oceanique development, in Rustington, still has 10 of its 46 flats for sale.

Managing director, Mike Hartnett, said the market had shown signs of slowing, due to the fact that first-time buyers were having difficulties obtaining mortgages.

"Businesses at the moment are not spending on updating or replacing equipment, and we as a company have decided to slow down construction works for a few months," he added.

Red Admirals, a Roffey Homes development of seven flats and two bungalows in Water Lane, Angmering, has been on the market since the end of last year, but so far only one bungalow has sold.

Roffey now wants to change a condition in the original planning permission, restricting sales to people aged over 55.

Michael Pickup, of Town and Country Planning Solutions, Roffey's agents, said in the company's latest submission to Arun District Council that the company had been was confident at the time of the original application that the market was there to sell to the age group.

"With the recent downturn in the housing market, however, and despite marketing through a period of over 10 months, there have been no firm offers made on the apartments."

He added that Roffey had been approached by West Sussex Primary Care Trust, which was interested in acquiring the properties for a key worker, shared ownership scheme.

Such schemes, though, have not been successful in Littlehampton, although that is now working in favour of first-time buyers.

Regents House, in Terminus Road, has been on the market since November, offering a 50 per cent share of 19 apartments to key workers.

After only one firm sale, the block of 12 one-bedroom and seven two-bedroom flats on the site of the former Regent Cinema has now been opened up to first-time buyers registered with Arun District Council.

David Butt, a partner at Graham Butt, estate agents for the properties, said the change was not necessarily due to the market, but the fact that there were not enough key workers in the area.

"First-time buyers in the area now have a fantastic opportunity to get onto the property ladder, from as little as £63,000 (for a half-share), even in the current climate. This is really positive news."

The scheme will also include Progress House on the site of the former Holmes Campbell solicitors' offices in Arundel Road. Although it has not fully come onto the market, three of the nine flats there have already sold.

Mr Butt said this demonstrated the desire, especially for first-timers, to buy.

A spokesman for Arun said: "Ultimately, anyone on the housing waiting list is eligible for shared ownership. To get on the list you must apply to the council's housing department.

"It provides a good opportunity for first time buyers who can afford to enter into shared ownership to get their foot on the property ladder."

-----------------------------
Click here to return to Gazette news.

Where are you? Add your pin to the Gazette's international readers' map by clicking here.

E-mail the Gazette: roger.green@littlehamptongazette.co.uk