The Dolls House originally occupied an alleyway between two houses until the space was filled with a pint-sized property.
It has just 339 sq/ft of floorspace and boasts one bedroom, two reception rooms, a kitchen and shower room.
Despite the lack of space, the cottage has an asking price of more than one quarter of a million pounds because of its stunning location.
It is in the picturesque village of Porthleven, Cornwall, and has views of the sea as well as the iconic watchtower, which is regularly photographed when it gets smashed by waves during storms.
The asking price works out at £737 per sq/ft – which is around the same as in Putney and Canary Wharf, according to Lonres which tracks property data in the capital.
The Dolls House, which is though to be the smallest home in Porthleven, is also a successful holiday rental with tourists paying almost £500 per week during peak season to rent it out.
It is on the market with The Mather Partnership.
Helen Retallack, negotiator at the estate agency, said: “We understand from local knowledge that it was built later than the neighbouring properties having originally been an alleyway between the properties on either side.
“We believe at one point it served as a local museum and was originally named ‘Box and Heater’ the name being changed to The Dolls House by the present vendors.
“It was previously owned by the same family for many years serving as a family holiday home and now trades as a successful holiday rental with tourists paying almost £500 per week during peak season to rent it out.
“The Dolls House is a fantastic opportunity to acquire a really quirky and picturesque property in a great location within this fantastic village which now boasts an array of eateries to include Rick Stein’s.”
The unique property, which was built in the 1850s is believed to have originally been used as a Victorian laundry house.
And while it was once detached, it is now an end-of-terrace property which has been converted into a surprisingly practical home.
Floorpans show that at its widest, the home is seven-feet one-inch wide, yet it still has almost 1,000 sq/ft of space, making it larger than the average new build.
This is thanks to accommodation being spread over four floors, with the kitchen and reception room on the ground floor.