Last Christmas I did an IKEA expedit unit up as dolls house - DD was 3.5 and DS was 18 months - so it has no cool opening doors or windows etc - and I just made a few bits of furniture from boxes. They love playing with it, the lack of features doesn't seem to bother them they just make up stuff anyway, and enjoy making there own furniture. We got my sisters Sylvanian families and have had some as presents - while I like the animals the furniture etc is not robust and many pieces too tiny and fiddly for DS in particular. They also use playmobile and Lego in it - and most of time is a real jumble but I don't think that matters - most of the pictures you see of dolls houses on the net are either owned by adults or much older children I reckon.
DD got a Doll hosue with wooden furniture & people (off ebay) for xmas last year (she was 5) she plays with it mostly to set it up & then leaves it. My 2yr old DS likes to play with it though< Again mostly just setting it up.
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