The awards take into account the quality and quantity of reviews and opinions specific to each award category, including Top Hotels, B&Bs and Inns, Luxury, Small Hotels and Value for Money. Described by recent visitors as a "beautiful house set in picturesque countryside" and a "delightful little gem", The Old School was found to be the best B&B for remarkable service, quality and value.
After it closed as a school in 1996, owner Wendy Veale, who previously worked in product development and food styling, converted the building into four-bedroom accommodation. The property has a dining room downstairs, a sitting room for guests above and outside, there's a stunning garden and orchard.
Rooms with double/ twin occupancy, along with breakfast choice and afternoon tea, are available for £135 a night.
Speaking about the recent accolade, Veale told Country Living UK she is "thrilled" to be recognised by the awards this year.
"As other worthy B&B owners will know, it's a jolly hard job, requiring stamina and a big smile and I do it with pride, welcoming guests from all corners of the world 'back to school', our lovely home here in the largest Area of Outstanding Natural Beauty in England," she added.
"I have lived in the Cotswolds for over 40 years now and enjoy showcasing our outstanding countryside, ensuring our guests day starts and ends experiencing true traditional English hospitality (always lots of cake involved!) and in between all the jobs, I sneak in my passion for our rescue animals which have quite a following with guests and on social media."
This year's awards also confirmed Brits do B&Bs the best, with five of the top 10 in the world located in the UK. Other winners include Bindon Bottom B&B in West Lulworth, Dorset, which has been named the second best in Europe and the UK and fifth in the world and 34 Argyle Street Guesthouse in St Andrews, Scotland, which was ranked third place in Europe and the UK and sixth in the world.
Here is the list of Europe's top 10 best rated B&Bs:
1.The Old School Bed and Breakfast, Little Compton, UK
2. Bindon Bottom B&B, West Lulworth, UK
3. 34 Argyle Street Guesthouse, St. Andrews, UK
4. Locanda dell' Artista, San Gimignano, Italy
5. The 25 Boutique B&B, Torquay, UK
6. Creston Villa Guest House, Lincoln, UK
7. Huis Koning, Bruges, Belgium
8. Creevagh Heights, Carrowmore-Lacken, Ireland
9. Chateau de Balazuc, Balazuc, France
10. Guesthouse 1x6 , Keflavik, Iceland