Cryptic crossword clue
Prison accommodates 12 – it’s a small building 7

The most common and most likely answer to this crossword clue is the 7 letter word COTTAGE

I've seen this crossword clue in Independent
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Buddy explains!

The straight part
We know that "it’s a small building" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case it’s a small building = cottage.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does COTTAGE mean?

COTTAGE noun
  1. A small house.
  2. A seasonal home of any size or stature, a recreational home or a home in a remote location.
  3. A public lavatory.
  4. A meeting place for homosexual men.
COTTAGE verb
  1. To stay at a seasonal home, to go cottaging.
  2. (of men) To have homosexual sex in a public lavatory; to practice cottaging.

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