Vibe: A two-bedroom turn-of-the-century cottage with a traditional pastel-coloured exterior, wrap-around garden and a balcony.

Setting: The heart of downtown Reykjavik, near sights, shops and the beautiful harbour.

Why parents love it: The bedrooms interconnect, and the top floor is an open-plan living/dining space with seating for eight (plus a sofabed for larger families).

Why kids love it: It’s only two minutes from a playground and the water’s edge. There are boat trips for birding and whale-watching from the harbour, plus exciting geothermal action to be had nearby.

Insider tip: Head for the Maritime Museum and the fun playground next door. It’s built from old fishing gear and recycled marine discards, with a real boat to clamber over.

Find out more: i-escape.com

READER OFFER: 7 nights for the price of 5; whole-house rental from £165 per night. Book through i-escape to get a free bottle of wine and welcome hamper.