The house is located on top of a small hill near the town entrance. It has two bedrooms, a bathroom, a kitchen with a stove, and a living room with a fire place. Various loot items can be found in the containers throughout the house; however, they are owned by Grey Mother, and taking them will be marked as stealing, causing you to lose Trust with her.
In the backyard, there is a small shed with a hatchet and prybar. Grey Mother will allow you to take these tools. Near the end of Episode 1, Grey Mother will give you a key to unlock a chest in the second bedroom, giving you access to mountaineering rope.
The house is occupied by Grey Mother, a blind old woman with a loaded rifle and a distrust of outsiders. She is the only remaining resident in the town of Milton, and is effectively trapped due to the collapsed tunnel out of town. From her house, she gives Will Mackenzie various missions, and allows him to use the house as shelter from the cold and the wolves.