If you want to stay near Alfama, this is a great location to stay. House felt smaller than pictures, though the view truly was spectacular. The house - unsurprising as it is in the older neighborhood of Lisbon - is on the older side, so if you want something newer, look at other neighborhoods. However, if you want to be a little away from all the tourist action and want to experience how Lisbon felt many centuries ago, this would be the place to stay :)
Only caveat: the bedroom ceiling is slanted (top floor, I assume the roof is slanted) and I'm only 5'3" and I kept hitting my head on the ceiling when I was standing at the bottom of the bed... something to watch out especially if you are one of the tall folks.
Overall, great location, great restaurants nearby, nice place to stay.