Low Fantasy? Urban Fantasy, set in pre-industrial villages?
I remember the book from a German version of the late early 1990s - Chanticleer, the name of the protagonist's family, struck a chord. It's the story of a peaceful little town of successful burghers, with fairyland basically just across from it but never officially acknowledged. Still, there is an undercurrent of fairy dealings even in the town of Lud-in-the-Mist, possibly in the workers' class but creeping onto the upper strata as well.
The fairies here, appearing late in the book if at all, are of the Oberon/Titania kind, or Puck rather, stealing human children, weaving the their magic glamour and leading humans astray. (Which may do some of them good anyway.)
Reminded me of a poem by Mervyn Peake, "Lean sideways on the wind", which is also about staid citizens and the call of elfin horns. Three and a half stars, rounded up.