A shabby building measuring just 15 sq metres and said to be bringing in rent of £10,000 a year has been withdrawn at short notice from auction. It was due to go under the hammer tomorrow.

The down-at-heel looking shed-like structure, the size of a garage, is in Walthamstow, north-east London, accessed by a grubby alleyway.

It apparently contains one room, a kitchenette, shower room and toilet.

It had been entered into a Barnard Marcus auction with a guide price of £70,000.

However, doubts were raised as to the legality of the residential-use building.

A spokesperson for Barnard Marcus said: ‘The property has been pulled from the auction so that further investigation can take place into the lot and whether planning permission is there.

“We pride ourselves on the accuracy of our descriptions and we have withdrawn this from sale while we carry out further investigations.”

The local council is also investigating. A spokesperson said: “The council will always take appropriate action if a property is found to be unlawful.”