War hero who paid £60,000 for house 35 years ago refuses to move despite £10million offer

Jack Holsgrove, 86, bought the five-bedroom beachfront property on Sandbanks in 1972.

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Jack Holsgrove has been offered millions of pounds for his home but he refuses to sell

Since then, the Dorset peninsula has become the world's fourth most expensive place to live.

The rich are drawn by views of the natural harbour, which is second only to Sydney's in size.

Sandbanks is now home to Portsmouth manager Harry Redknapp, his son Jamie and Jamie's pop star wife Louise.

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Prime location: Mr Holsgrove has a house in the fourth most expensive place in the world

Other residents include Sir Peter Ogden - owner of the Psion computer empire and founder of Computacenter - and Ian McGlyn, the reclusive Body Shop partner.

Fish and chip king Harry Ramsden also has a holiday home on the peninsula. Mr Holsgrove's neighbours recently sold their eight-bed property for £12million, a Sandbanks record.

But even though a quarter-acre plot of land like his can fetch £ 5million on its own, Mr Holsgrove says no amount of money will persuade him to sell up.

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This exclusive island is sandwiched between Poole Harbour and Bournemouth

"Why would I ever want to sell and live somewhere else?" he said yesterday.

"No amount of money could buy that view again.

"I've had agents come round promising millions and millions, but I'm just not interested. What would I do with £10million?

"They could offer me £50million but I won't change my mind.

"My granddaughters love coming on holiday here, they'd kill me if I sold up."

Situated between Poole Harbour and Bournemouth, Sandbanks is dubbed Britain's Monte Carlo.

The boom is said to have started in 2001 when Tom Doyle, an estate agent, sold a 1,200sq ft apartment for £1million.

Only property in Hong Kong, Tokyo and Belgravia was more expensive.

Mr Holsgrove, who worked on the bouncing bombs used by the Dambusters in 1943, moved into property development when he left the RAF.

When he bought his Sandbanks home, a typical two-bedroomed home cost just £3,000.

His two-storey property, built in 1936, has four bedrooms, two bathrooms, dining room, kitchen, two sun rooms, office and a one-bedroom penthouse on the roof.

As well as a double garage, there is space for ten cars.

The sandy beach is just a few yards from the back door.

Mr Holsgrove, whose wife Pauline died ten years ago, has a son Stephen, 48, a software engineer, and three granddaughters, Rachel, 19, Rebekah, 17 and Alice, 14, who live in Wimbledon.

"This is one of the most wonderfully relaxing parts of the world," he said.

"We were still swimming in the sea just before Christmas the weather was so nice.

"I'm sure the prices will calm down one day. Either way, I'm more than happy where I am."

Robert Dunford, of Dorset estate agency Tailor Made, said Mr Holsgrove's-property was worth at least £8million.

"Getting a true value on any of these homes is extremely difficult as there are perhaps only 30 or so that actually sit on the beach," he added.

"This is probably the only place in Britain where you can have your own exclusive stretch of coastline, right outside your back door.

"Because of that most of the current owners are very similar to Jack - even if I was to offer them £ 15million they would still turn me down.

"You'd know they would mad to sell up and move.

"They could never replace it."