I was here for a couple of nights, travelling solo, I booked it through Booking.com (it has to be noted that there it's listed as a "hostel"; there is indeed a hostel in Peniche, but this is, in fact, just a shared apartment). I was staying in a room shared amongst 4 people max., with bunk beds. The fourth person was luckily missing, otherwise it would have been a bit packed. The room was O.K., for 20€/night, but I had a look at the rooms upstairs and they are definitely nicer (the ones that appear on the pictures - if you can afford it, definitely ask for number 6!). The location is good if you have a car, there isn't a lot to do in Peniche, if you're travelling solo and you just want to explore and go to the beach, then you're better off in the hostel in town.
Being said that - if you want to try surfing, this is the place. The surf school is just 10 minutes walk. The owner, Joao, is a really nice guy, passionate about surf, and on my arrival he brought me to see the surf school and also the Supertubos beach in his Jeep! Be aware that most people staying in the house will have booked their accommodation as a package with surf classes, sometimes in big groups, so if you're travelling solo and you're not there for surfing only, you might feel a little out of place and act as a filler of empty beds. I'd advise it's better to go with a friend, if you just plan to stay a couple of days and try out a couple of surf classes. You'll get a better value for money for a twin room. If I come back, I'd probably stay again if with a friend or a group of friends, and book a surf camp, but as to the accommodation itself, I this it's average when it comes to the shared room, better than average for shared spaces, but good value for money!