September 29, 2007 (LPAC)--The British holiday bubble is deflating. British investors who own second homes in the Mediterranean and Eastern Europe face a big price correction, says Prof. Michael Ball, professor of real estate at Reading University, and a housing policy adviser to the British government, reported the Financial Times.

Prices rose fast, and many new homes were built. Many British people bought homes in Florida, where there is now a huge oversupply. In Estonia, housing prices dropped an estimated 10% in the past 12 months. Ian Marcus, head of European real estate at Credit Suisse, says there is a large unsold inventory of holiday homes at European resorts, especially Spain, which is seen as the Florida of Europe. EIR previously reported the near bankruptcy of Llanera, a developer of resort homes in Spain.

Up to 400,000 properties abroad are owned by British investors, says Savills, a real estate agent.