Garland Penny placed in holiday home (7)
I believe the answer is:
chaplet
'garland' is the definition.
('chaplet' can be a synonym of 'garland')
'penny placed in holiday home' is the wordplay.
'penny' becomes 'p'.
'placed in' means one lot of letters goes inside another (I've seen this in other clues).
'holiday home' becomes 'chalet' (I've seen this before).
'p' placed within 'chalet' is 'CHAPLET'.
(Other definitions for chaplet that I've seen before include "Ornamental wreath worn on the head" , "Little fellow" , "Garland or wreath for the head" , "flower arrangement" , "top band?" .)