Elf house on a tree! That would be cute in the garden, especially in the tree over grown with ivy. How about some battery tea lights in the windows during outdoor parties. I hear the fairies/elves whispering "home school project" in my ear.
Isn't this 'Fairy Tower' (by the infinitely talented Roger Davies of Enchanted Cottages) one of the most magical faerie dwellings you've ever seen? It makes the faeries at The Faerie Shop yearn for the magic of windswept Scottish moors!