I have been googling this as it's one of my most well remembered books from childhood. I can't find it but this is what I remember. Do you know the missing lines? I may have missed more too.
Dell’s house
In mushroom town all red and brown
There lived a merry elf
Day after day at work and play
He whistled and sang to himself
His name was dell and a tale I’ll tell of how one very sad day
The rain came down on mushroom town and washed his house away
Dell cried oh dear it’s ruined I fear
It really is a shame
But his neighbours all had heard him call
And out of their houses they came
They searched around until they found
A mushroom new and dry
They painted the door and covered the floor
With a carpet as blue as the sky
A dear little table the woodpecker was able
To make from an old oak tree
A chair and a bed which they painted all red
And a stool that was round and wee
Their work complete with a pattern of feet
The kind elves dashed off home
They....
And tidied their hair with a comb
....
They raided their cupboards and shelves
Their arms they piled high with plum cake and pie and honey they made by themselves
Then all in a row with light tipping toe
To dell’s house they went down
What feasting and fun when a good deed is done
For the elves of mushroom town