A tiny Walthamstow ‘studio flat’ has been withdrawn from an auction, having been listed with a guide price of £70,000.

The small shed-like structure, built at the back of a house in Markhouse Road, was due to go under the hammer, with the promise of £200 per week in rental income for the new owner.

Despite the hefty price tag, the entrance to the studio is in run-down Markhouse Passage, which is littered with graffiti and rubbish.

The shed dwelling, which was due to go to auction tomorrow, was pulled out after inquiries from a national newspaper.

It was revealed the property was listed as ‘land’ on documents.

Waltham Forest council said it will investigate the property to make sure it is being used appropriately.

The average property price in Waltham Forest is about £330,300, up 28 per cent in 12 months.