My personal solution to the problem of mounts in confined spaces was a little- ahem- innovative. You see, it turns out that a Halfling paladin can summon a riding dog for his mount instead of a horse. Which is a highly portable one square creature, not to mention way scarier than some stupid herbivore. :)
Your Mileage (and tolerance for the needling other PCs inevitably give a halfling with 24 magically adjusted strength) May Vary, of course. ;)