A group of friends-- singles and couples-- stayed in the cottage on the "Main Street" of the smaller-than-a-village Windermere. The rental is a house, opposite Windermere House, which is an very refurbished old-railway-style hotel with a great bar for drinks.
I think our accommodations were better than any hotel, though! We pretty much filled all the beds, including on the front and back porches. But we all had our private space. The kitchen-living room was comfortable and we did no feel crowded. It's an old house completely re-done by a couple of architects, -- so very lovely. They have a place next door and are very helpful. The beach, which is shared with the hotel, is a just a walk down the street. It's very sandy, and has a raft, and a delineated swimming area-- so it wd be great for kids. Buy some bacon from the general store !