We have just started reading this un-put-downable book
The weirdstone Og Bisinganmen by Alan garner
http://www.amazon.com/Weirdstone-Brising...9348&sr=8-1

may be a little scary 'for the wee ones' - for them best stick to Enid Blyton's Faraway tree - magical
http://www.amazon.com/Faraway-Tree-Stories-Three-Books/dp/1405201711/ref=pd_sim_b_4

Or if you just like looking at pictures
Flotsam by david Weisner
http://www.amazon.com/Flotsam-Caldecott-...9548&sr=1-1