Ok - I've just read through all the replies.
I'll be honest I'm not used to buying and selling property, I've only done it once before and as a first time buyer it was all straight forward, I took the estate agents word that the loft was a bedroom and I naively thought that it was classed as a 3/4 bed because one of the first floor bedrooms is tiny.
Anyway I did email the agent today and I got a response from the company director-
Here it is -
I called and left you a voicemail to discuss your recent email to Ben.
I'll keep it simple. You viewed the property twice. You were completely aware of the layout and the set up of the loft extension. I was also in the office when Ben spoke to you on the phone explaining that the loft room was not technically a bedroom, although it was dressed as one, it could only be classed as a loft room.
In regards to price - There will be no reduction in the price. Your reduced offer from the asking price, and the asking price itself were priced based on the property being a 3 bedroom house with a loft room. If the property was officially a 4 bedroom house, then it would be advertised at £500,000.
If you do not want to proceed with the purchase, then I will have to put the property back on the market immediately.
Let me know,
I have to point out that at no point did the agent mention that the room was 'dressed' as a bedroom until he called yesterday, also when we viewed it wasn't mentioned either, I may be stupid but I have no idea what quantified an acceptable loft room, I saw it and it was a room with a bed in it, I took it that as the description clearly mentions the loft being a bedroom that it was - officially.
Anyway lesson learned I guess, I won't be going ahead with the purchase, too many red flags and too much hassle this early on.
Thanks to everyone for the advice, as I said I had no idea and it's been very helpful.
do you think I should report to the property ombudsman? as it definitely was misleading especially as he only called last night to mention it was a three bed, no mention of that at the viewings.