The house is located almost in the center of Sintra. The place is just as described and photographed, all the people very welcoming (it is a guesthouse).
Definitely worth recommending.
We had some trouble though, with finding it. It is located down the valley, in midway of a super narrow and steep street (we did not even try to pass it with our Ford Focus). It takes less than 10 min to climb it but requires good shape (attention if you are pregnant, with kids or an edelry person).