THE Pembrokeshire seafront property whose garden inspired Peter Rabbit author Beatrix Potter is up for sale for £1.8m.

The renowned children's writer holidayed in Tenby in 1900, where she stayed at number 2 Croft Terrace on The Croft, overlooking the North beach and harbour.

From there she wrote a letter telling tales of rabbits living on the cliffs and painted a lily pond which was to feature in the Tale of Peter Rabbit when it was published two years later.

The Grade II Listed Georgian property, together with 1 Croft Terrace, is now known as Croft House, which has just come on the market after over 50 years in the ownership of the same family.

It was originally a 20-bedroomed hotel, but since the late 1980s has been divided into 12 self-catering apartments.

Andrew Lowe, whose family bought the Croft Hotel in 1964, said: "The property was actually the first hotel in Tenby to be converted into apartments, and this caused quite a stir at the time.

"Quite unusually, there is no holiday let covenant in existence, so if the building remained as apartments, they could be occupied all the year round.

"However, it would also revert very well to a 20-bedroomed boutique hotel, or two large town houses."

A copy of one of Beatrix Potter's letters about Tenby is on display in the hallway of the property.

Said Mr Lowe: The letter was one of four 'Tenby letters' written in 1900 by Beatrix Potter to the children of her governess, Annie Moore.

"She also did two paintings of the garden of Croft House, no longer part of the property.

"The lily pond illustration that appears in the Tale of Peter Rabbit was taken from one of these paintings."

The property is for sale with Fine and Country Pembrokeshire.