Two British pensioners living in Spain have had their home demolished after being given two hours to pack their belongings – reviving fears among thousands of other expatriates that their own houses could be at risk.

Len and Helen Prior, both 63, moved from Berkshire to Vera, a village near AlmerÍa, on the southern coast of Spain, six years ago, investing their life savings in a £350,000 home. They gained planning permission for their project from the town hall but the regional government of Andalusia insisted that the home had been built on protected greenbelt land and had to be demolished.

Despite threats from the regional authorities, the Priors’ solicitor had repeatedly assured them that their home would be safe. On Wednesday morning, however, a dozen police officers stood guard as a mechanical digger moved in. The couple were given two hours to clear out their belongings before their home was bulldozed.

Mr Prior, who suffers from a heart condition, collapsed and was taken to a nearby hospital. He was later discharged and the couple were staying with neighbours yesterday.

“We’re devastated,” Mr Prior said. “This has been our home for almost six years. To have it pulled down in front of you is painful beyond belief. We sold a beautiful house in Berkshire to move over here six years ago so that we could enjoy the weather and the Spanish lifestyle. Now we wish that we had just stayed put.

“It has turned into a nightmare. Our home is just a pile of rubble and we have nowhere to go.”

Mrs Prior, a retired computer programmer, said: “I stayed behind and watched the house and garden being torn down. It was quite horrendous. We have invested so much time, effort and money in it. The garden was my pride and joy and took us years to complete. I am very, very angry.”

The Priors have received no compensation from the regional authorities, but plan to pursue a claim through the courts. Another ten homes in the neighbourhood are reported to have been threatened with demolition.

Many villagers watched in horror as the three-bedroom house, which had a swimming pool, was reduced to rubble. “It was absolutely unbelievable,” said a neighbour, who asked to remain anonymous. “Everybody in the area just feels totally sick.”

Though many British homeowners in Spain are facing legal problems, the demolition of property belonging to expatriates has so far been rare. But the move by Andalusia’s regional government has heightened fears that they could become much more common in future.

“I hope that it’s not a sign of worse things to come,” said Charles Svoboda, a retired Canadian diplomat who campaigns against Valencia’s “Land Grab” law.

“There is no legal certainty in Spain. It is certainly not going to improve the country’s reputation for being a place to which you can retire in peace.”

Yesterday the inhabitants of Vera expressed particular outrage at how the Priors’ home was destroyed. “It was the way it was done. To give somebody two hours to get their belongings out – it’s inhumane. It’s not the way things are done,” a neighbour said.

The local mayor, Félix López Caparrós, said that the Priors had fallen victim to a planning dispute between the town hall and the regional government. “We have become the scapegoat in this battle,” he added.

He said that the demolition was illegal because the regional authorities had not awaited the verdict of a court appeal.

A spokesman for the regional government of Andalusia said that he had no information on the incident.

Times recommends

• Second homes: credit crunch casualty or money-spinner?
• How I built my own sliding house
• Top 10 incentives for house buyers