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Independent Holiday Cottage not offering refund

Hi Folks
I know there are similar tales on here, but my story has a bit of a twist, so really helpful of any advice.
We (not me) booked a group cottage and can obviously now not go. This was done via Bank Transfer direct with the owner (cringe). We started dialogue with the owner when all this kicked off. Initially they refused to acknowledge the booking couldn't go ahead, but once we pointed out that they couldn't commercially open, they offered a rebooking, but only till the end of June 2020. We said this wasn't suitable and the lockdown could still be in force, so please could we have a refund. This was eventually forthcoming and we have an email confirming that a full refund will be given. 4 days later they change their mind, offering a rebooking for the rest of the year, or 1/3 of the payment. We've basically said that's an insult and as the relationship has soured to the point we don't want to rebook any more. I've also since out the house is for sale so lost confidence that any rebooking will be secure anyway. The owner has pleaded hardship, which we have sympathy for, but we initially decided as a group to accept a 50% refund, but that was rebucked.
We have since pointed out to the owner that they will be eligible for the govt grant to cover lost revenue, but this is gone on deaf ears. We feel like our payment is covering other bookings and even if they receive the grant (Very likely), we still won't be getting our money. We feel they are taking liberties with our money and making up the rules as they go along. They have not acknowledged the house sale or most of our key points.
Appreciate that we legally don't have too many options (although I would hope the email confirming full payment would count as something), but I feel our next move is small claims court. That or we hold out and hope the Govt announce an official position for folks in this situation.
Any thoughts gratefully received
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