The house measures eight feet seven inches wide at the front, but reduces to six feet three inches towards the back.
Owner Malcolm Cross has used the property in Colchester, Essex as a commercial store for electrical equipment for the last 30 years.
The property is quite possibly the smallest house in the oldest recorded town in England
"I bought it from an elderly lady who lived here with her son. It has been perfect for what I've used it for.
"I love it to this day. It would be a nice little cottage for somebody if they were willing to do some work on it."
Estate agents Fenn Wright described the house as "a charming Victorian end of terrace cottage" which requires modernisation.
However, despite its tiny size, the cottage is not the smallest house in the UK.
The current record holder is a home in the Welsh fishing village of Conwy, which measures just ten feet tall and six feet wide.
The Colchester property has been put on the market the same day official figures revealed the average UK house price has risen to £254,000.
According to the Office for National Statistics (ONS), the average UK property price rose 6.8 per cent in January.
In London property prices now average £458,000, almost 23 per cent higher than before the 2008 global financial crisis.
Campbell Robb, chief executive of housing charity Shelter, described the figures as a "blow" to young people trying to get on the property ladder.
He said: "No matter how hard young people and families work or save, these days most simply can't keep up with sky-high house prices, and are instead facing a lifetime of unstable renting.
"If we want to give the next generation a fighting chance, the Government has to get serious about building the affordable homes we need now."
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