Jane Archer, 49, and her partner Chris Cutting, 45, paid £20,000 in 1987 for the property in Happisburgh, Norfolk.

They have since repaid the mortgage and hoped to use the bungalow to take out a £50,000 loan to expand their engineering business.

But they were told by their prospective lender that their home is now worth only £1 because of its proximity to the North Sea.

The bungalow, which was almost 440 yards from the cliff when they bought it, is now just 65 yards from the edge.

Ms Archer said: "We're just stuck with it. We're going to stay for as long as we can because we've got no alternative.

"When we bought it, it was in a 'hold the line' area but, after we'd been here seven or eight years, we found out the sea defences had been abandoned.

"Ideally, we would like the sea defences to be improved. We bought it because we wanted to retire here. If that's not possible, we would like something to help us relocate."

Estate agent Ben Johnson, of Norfolk-based Sowerbys, said a "handful" of properties along the north Norfolk coast were in a similar predicament.

"There's absolutely nothing you can do about it," he said.

"The houses are not insurable and they are valueless."