Farraday was the little stranger. He came to the house as a child, not an invited guest but the son of a maid (a "little stranger") and never really went away in his mind. When the opportunity arose he linked up with the psychic forces in the house to cause destruction because he subconsciously wanted to marry Caroline, in order to live there and become lord of the manor.
The Little Stranger in the title is a direct reference to a "supernatural" concept mentioned far into the book - that of a the personification of a living person's feelings, resentments and anger taking the shape of a sort of "ghost" who "haunts" the house and lashes out at people this person may harbour a hidden resentment to. It is unclear (left to the reader to assume) if the little stranger in this case stems from the resentments of Caroline or Roderick, both at themselves, other family members and the house itself.
That Faraday may have been the little stranger in the title is also an interesting concept, and one I had not thought of.
I was thinking about the final incident - right before Caroline fell. I'm guessing this is supposed to have happened right when Dr. Faraday was having that dream, about the road to the house leading on and on to nothingness... and I was wondering, why put Dr. Faraday in such close proximity to the house, with no alibi, without a reason?
I don't think he actually killed Caroline - but I was thinking, I'm pretty sure he is what Caroline saw, when she ran and fell. Maybe the evil-ghost-Faraday actually pushed her, I don't know. But who else would she recognize like that, and run from, under those conditions?
I'm still really confused by what all this means. Maybe "the little stranger" was many people? An embodiment of resentment, like you guys were saying, but a generalized one, drawing on the resentments and guilt of anyone connected to the house? I don't know!
Waters used the death of little Susan as a red herring. While the reader was focused on that possibility for explaining events Waters had a much more complex tale to tell. Still not sure I feel like Waters wrapped it all up but I'm also sure I could understand this better!! I should have read the posts before I read the novel. Might have spoiled it somewhat though. Certainly rich enough writing to warrant a long paper if one had to analyze it that closely.
I think it was Farraday also.... I think he was The Little Stranger in the book. When he came to the house the family was a little eccentric but otherwise fine. Once he started showing up all the trouble started. I think he wanted the house so badly he was subconciously picking off all the people standing in his way, by some sort of psychic poltergeist or whatever. I don't quite understand it all which is a reason I didn't enjoy the book as much as I would have liked to. It's not that I wanted a happy ending but I wanted some sort of conclusion to the hours I poured into the book waiting for the answer.
I agree that Faraday was the Little Stranger. For me it was (1) the childhood scene where he defaces the house to steal a piece of it; (2) his reaction when Caroline breaks the engagement and decides to leave Hundreds--he objects to abandoning the house, even though i thought, with all the creepy stuff going on that I would rather beg on the streets than live there; and (3) when he himself feels the "presence" in the house in the final sentence, he realizes it's only his own distorted reflection.