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Faerie was a magical realm.
One account suggested that the Strange and Wonderful House's peculiarities stemmed from the fact that it had been built on land that was once part of Faerie, using wood harvested there, such that “something of Faerie” had always lingered within it. (PROSE: Our Strange and Wonderful House: The Secrets of Our Gardens (Part 2: Accursed Springs))
In the Collapsed Cosmos, it existed somewhere between Jenny's home city and Scotland, in the forms of the woods of Faerie. Jenny believed that, given the frayed state of reality, it would be possible for her to get to Faerie simply by reading from the Child Ballads (specifically, the Ballad of Sir Thomas Rhymer), without needing actually to shift. (PROSE: The Hermetic Garbage of Jenny Everywhere)