The wooden structure which measures just 18ft by 15ft in Abersoch, on the Llyn Peninsula in north Wales, is understood to have already attracted three offers above the minimum asking price.

The single-storey shed, sandwiched between two homes, has electricity and water supplies but needs planning permission before anyone can use it as a home.

It has no view of the nearby coastline or countryside and part of the damaged roof of the structure is covered by plastic sheeting.

Nevertheless, estate agents Beresford Adams is asking for offers over £150,000.

The company's website described it as in a "dilapidated state of repair".

The particulars read: "An interesting opportunity to acquire a unique plot which has been occupied for a number of years by a detached single storey timber built bungalow with vehicular parking to the front.

"The dwelling is in a dilapidated state of repair but offers tremendous redevelopment potential, subject to necessary planning consent being granted by the local authority, Cyngor Gwynedd.

"We understand mains water, electricity and drainage are connected to the property and the present accommodation provides a lounge/bed sitting room, kitchen and shower room."

Abersoch, which has a population of 1,000, is a coastal village close to Pwllheli, which is popular with walkers and watersports enthusiasts. Last July a mobile home in the town sold for a record-breaking £500,000 and, in May 2005, a strip of coastline with planning permission for a beach hut fetched £63,000.