A former 16th-century inn where William Shakespeare stayed and is believed to have been inspired to write A Midsummer’s Night Dream is on the market for £1.5m.

Grade II-listed Shakespeare House, in Grendon Underwood, is part-Elizabethan and part-Georgian.

The Bard lodged there several times when it was known as The Ship, while travelling between his home in Stratford-upon-Avon and London.

Tom Carey, of agents Knight Frank, said: “An extract from the Illustrated London News in December 1847 reads: ‘This house was formerly an inn with the sign of The Ship and here it is traditionally said that Shakespeare used to sojourn on his tedious journey from Stratford to London and vice versa’.

“With later Georgian additions, the property had fallen into disrepair but has now been lovingly restored and beautifully finished by the current owners to create a wonderful residence of great character incorporating an eclectic mix of original period features with contemporary living.”

A reception hall includes exposed timbers and an original brick fireplace.

The drawing room, in the Elizabethan part of the house, has an open fireplace, leaded light windows on three sides and exposed ceiling and wall timbers.

There is also a wall painting dating from the early 17th century.

An inglenook fireplace is the main feature of the dining room and there is a family room/study and a kitchen/breakfast room with handmade oak units, granite worktops and full-height windows overlooking a courtyard.

There is also a utility room and a cellar.

A Jacobean oak staircase leads to a master bedroom with windows on two sides and a feature fireplace and an en-suite shower room. There are three more double bedrooms and two bathrooms on the same floor.

The second floor has two more double bedrooms, two bathrooms, a dressing room, sitting room and a single bedroom.

The grounds include a rose garden and two ponds and back on to open fields.

A barn near the house, known as Playwrights, is also on sale for £650,000 and there is also a building plot site of 0.3 acres on the other side of the garden being marketed for £500,000.

Mr Carey added: “All three properties are available as a whole at a guide price of £2.65m. The three plots together offer great potential as a lovely wedding venue or boutique B&B. The owners already run a very successful B&B from the main house.”

For more information, or to arrange a viewing, contact Knight Frank on 01865 790077 or visit knightfrank.com