The £500,000 teddy bear

This teddy bear doesn’t have diamond eyes and a gold nose like the one offered by Selfridges last year, but still, it asks for a whopping half a million pounds.

But the buyer of the cuddly toy will also get the bear’s home – a beamed cottage in Lavenham, England – one of the country’s most picturesque medieval villages.

Mr McKinlay, 73, a retired butcher and farmer, said: “It is time for me to move on so I decided that Teddy might help me sell the house.

The three-foot bear belongs to homeowner Walt McKinlay’s daughter and is now sitting on a chair next to the window of the property with a “Buy Me” sign.

“I have already had a lot of interest and a couple of viewings after property hunters saw him in the window.”

The new owner will have to pay £495,000 (US $740,000) for the Teddy bear and the 17th century property in the village’s ancient market square.

Lavenham, described by one architectural expert as the finest surviving medieval village in England, boasts more than 300 listed Grade I and 2 buildings and its streets of lime-washed timbered homes attract more than a third of a million visitors every year.