We had a great break at Casa En Entorno rural de la Laguna. The hundred year old cottage has much charm and character. It's more a semi rural home than a holiday let. Set in a ribbon development village with a choice of friendly bars, restaurants and small shops it provides an ideal base to explore the north and middle of the island. The cottage is very spacious and its quirky furnishings and decoration give it a certain Fawlty Tower charm that we loved. While not being to everyones' taste, it was as far removed from your tourist built Tenerife apartment as it is possible to get. We met no tourists or Spaniards who spoke English in the area but communication was easy and friendly. The only downsides were the noisy dogs and traffic on the road outside.
We hired a car from AutoReisen (£63 per week with FULL damage waiver cover and a fair fuel policy paid all on a debit card) and toured the forests, mountains, national park, Teide and beaches. We loved it.