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Taking your kids for a holiday at South West England would be great. You can tour around the places such as Cornwal, St Ives, Padstow, and more. It's the home for family frienly holidays. Your children will enjoy the beach, parks and museums. Here are more places to explore in Britain: http://www.myguidebritain.com/south-west-england. If you decided on having a south west trip, Cornwall would be the best place to stay. There are self catering holidays there such as http://www.bluechipholidays.co.uk/cornwall-holiday-cottages that offers great discounts for July.

Devon's coast are really scenic. If you go for a holiday with your parents in Devon, I think you should stay at an accommodation which is near the coast. Jurasic coast is one of the famous coasts in East Devon to explore. I has a lot of excellet reviews as I have seen from tripadvisor http://www.tripadvisor.co.uk/Attraction_Review-g198665-d268141-Reviews-Jurassic_Coast_Dorset_and_East_Devon_Coast-English_Riviera_Devon_England.html. If you want to go there, here are lists of cottages where you can explore Jurasic coast easily: http://www.bluechipholidays.co.uk/devon-holiday-cottage