Yachtsmen living in the fourth most expensive place on the planet – Sandbanks near Poole in Dorset – are suffering from a slump caused by the credit crunch.

More than 30 per cent of the yachts on the tycoon’s peninsula are for sale, two multi-millionaires have gone bust and estate agents are struggling to sell properties.

Ferraris, Bentleys and other top cars are no longer to be seen and local building firms have collapsed according an investigation by The Sun newspaper.