There is something quaint and charming about each piece in the Department 56 collection. The Merry Lane Cottages #7 and #8 are over the top in terms of how cute they are. The pieces, which are elf cottages, measure over three inches tall. They are designed by Department 56 for its collection. The cottages, which look like homes with elf hats on top of them, are primarily blue in color and feature detailing throughout them.