CREDIT crunched second home owners once accused of turning picture postcard Westcountry villages into ghost communities are deserting them in their droves, according to new research.

National estate agent chain Savills say the same people who once vacuumed up desirable seaside and countryside properties are now keeping hold of their money.

As a result, second home sales have plummeted across the region by as much as 10 per cent.

However, Richard Copus, the chairman of the Devon Branch of the National Association of Estate Agents, urged a note of caution warning the phenomenon was likely to be temporary.

"I would say sales of second homes have dropped by at least 10 per cent, I can't remember the last time I sold a second home to someone," he said.

"I think it is right to say that people with money at the moment are not buying second homes.

"But with low interest rates for the foreseeable future and the fact that property has always been a good long term investment, I don't think the second home owners will be staying away for long."

Mr Copus said with prices of 'bolt-hole' cottages dropping, his firm had found more local people were able take their first step on the property ladder.

"Recently I have sold a good handful of country cottages of the types previously bought as second homes to people living and working in Devon, which is good news for local communities."

According to Savills, house prices in Devon and Cornwall have fallen by between 21per cent and 24 per cent since a peak of summer 2007.

The firm found that the number of second homes has dropped 10.55 per cent in the Isles of Scilly, by 5.99per cent in South Hams, by 3.77 per cent in Caradon and by 2.09 per cent in West Somerset.

By contrast, in North Cornwall, second homes had increased by 5.35 per cent and in Penwith by 3.66per cent.

Lucian Cook, director of residential research at estate agents Savills, said the drying up of big City bonuses was one of the factors behind the sudden drop.

"There has been a sharp price correction in some of the traditional second home markets, particularly where City money had fuelled a real price boom, such as in Devon and Cornwall."

He said resorts such as Salcombe in South Devon and Rock in North Cornwall, which has seen huge price growth, the market is very quiet.

"In these resorts, where four out of ten properties are second homes, we expect turnover and prices to remain suppressed for some time," said Mr Cook.

But Peter Cornwell, who runs Marsdens Cottage Holidays based in North Devon, believes the Savills analysis is over-gloomy.

"The only change we notice is that holiday home owners, who previously kept a property entirely for their own use, are coming to us to raise enough money from rental income to cover running costs. They don't want a holiday home to be negative on cash flow.

"Otherwise, we have seen an increase in would-be buyers coming to us with £300,000 to £600,000 in the bank, and no longer prepared to accept minimal rates of interest. On a £300,000 holiday home, there is a good prospect of raising £8,000-£9,000 a year after all expenses, which is a return of 3 per cent per year."