There’s something deeply charming about a UK terraced house. You know the ones: red brick, narrow front doors, maybe a tiny garden out back that could technically fit a chair if you squish it against the wall. They’re humble, practical, and—if you decorate them thoughtfully—ridiculously beautiful.
When I first moved into a small terraced house in Manchester, I’ll be honest—I was overwhelmed. The living room was basically the size of a shoebox, the kitchen looked like it hadn’t been updated since the ‘80s, and the staircase? Let’s just say it was more “Harry Potter cupboard vibe” than “architectural feature.” But over time (and lots of trial, error, and late-night Ikea orders), I discovered that small terraced homes can pack more charm than a sprawling suburban pad.
So, if you’re sitting in your own narrow little slice of Britain, tea in hand, wondering how to make it feel timeless instead of cramped—this one’s for you. Let’s dive into 23 interior design ideas for small UK terraced houses that actually last.
1. Embrace the Narrow Layout Instead of Fighting It
Terraced houses aren’t exactly known for open floor plans. You get narrow corridors, cozy living rooms, and sometimes awkward alcoves. Instead of trying to bulldoze walls, work with the shape.
👉 A trick I learned: long striped rugs can visually stretch the hallway, while mirrors at the end make it feel less like a tunnel. In my place, I put a tall IKEA HEMNES mirror in the hall and suddenly it looked double the size.
2. Neutral Walls, Bold Accents
Small spaces love neutral walls—it keeps things feeling airy. But don’t confuse neutral with boring. Go for warm whites, soft greys, or light sage, then throw in bold accents: patterned cushions, textured throws, or even a statement chair.
I once painted my living room walls Farrow & Ball’s “Slipper Satin” and added jewel-toned cushions. Instantly felt chic but not sterile.
3. Built-In Storage = Your Best Friend
You know those awkward alcoves next to the fireplace that look too shallow for furniture? That’s prime built-in territory. Custom shelves or fitted cupboards can swallow clutter while looking intentional.
👉 Bonus: add doors with shaker fronts from Howdens or B&Q, and suddenly your random piles of wires and board games are out of sight, out of mind.
4. Make the Fireplace the Star
Even if your terraced house has a sad blocked-up fireplace, don’t ignore it. Restore the hearth, paint the mantle, or even pop in candles for a cozy glow.
In my old place, I tiled around the fireplace with patterned Topps Tiles ceramics. Guests thought it was original Victorian. (Reader, it was £40 and a Saturday DIY project.)
5. Extend Your Kitchen With Light
Most terraced house kitchens are galley-style—aka narrow. If knocking down walls isn’t an option, lean into brightness:
Glossy cabinets that bounce light.
Open shelving instead of bulky uppers.
A skylight if you can swing the budget.
👉 I added under-cabinet LED strip lights for £20 from Amazon, and suddenly my tiny kitchen didn’t feel like a cave anymore.
6. Keep Floors Consistent
One of the biggest mistakes I made was mismatched flooring—wood in the hall, laminate in the lounge, tile in the kitchen. It made everything feel choppy. Switching to one continuous flooring (engineered oak, in my case) instantly tied the space together and made it feel bigger.
7. Small Bedrooms, Big Impact
Terraced house bedrooms are usually cozy (read: small). To avoid feeling boxed in:
Go for a storage bed with drawers.
Use wall sconces instead of bulky bedside lamps.
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Keep bedding light and layered.
In mine, I swapped a chunky wardrobe for an IKEA PAX system with sliding doors. Gained two feet of space—life-changing.
8. Double-Duty Furniture
When square footage is limited, every piece needs to earn its keep. Think ottomans with storage, fold-out dining tables, or benches that hide clutter underneath.
I found a velvet bench from Made.com (RIP, still mourning their closure) that doubles as shoe storage in the hallway. Stylish and sneaky.
9. Don’t Skip the Hallway
Terraced house hallways are often overlooked, but they set the tone. A simple runner, some hooks for coats, and maybe a slim console table can make it feel intentional.
👉 My hallway flex: a peg rail from IKEA’s KUNGSFORS kitchen line that I repurposed for coats, hats, and even hanging plants. Quirky, but it works.
10. Maximise Vertical Space
If you can’t go wide, go up. Floating shelves, tall bookcases, or even hanging plants draw the eye upward.
In my lounge, I stacked books to the ceiling on a ladder-style shelf. Not only did it look cool, but it made my ceilings seem taller than they are.
11. Bring in Light With Clever Mirrors

We all know mirrors are the oldest trick, but in terraced houses, they’re essential. Round mirrors in small bathrooms, oversized ones in the lounge—it’s all fair game.
My trick: hang a mirror opposite the garden window. Boom. The room looks like it has double the greenery.
12. Kitchen-Diner Hacks
If you don’t have space for a full dining table, go fold-down. IKEA’s NORBERG wall-mounted table saved my sanity—it folds flat against the wall when not in use.
13. Bold Wallpaper in Small Spaces
Powder rooms or the tiny upstairs loo? Go wild. Wallpaper feels indulgent in small doses.
👉 I used a moody floral print from Graham & Brown in my downstairs loo, and it’s now everyone’s favorite talking point.
14. Cosy Lighting Layers
Forget just one overhead pendant. Mix wall sconces, floor lamps, and table lamps. Warm bulbs are a must.
Pro tip: switch to smart bulbs (Philips Hue is my fave). I can turn the lounge from “Netflix mood” to “Zoom call acceptable” with one tap.
15. Keep the Garden Simple
Terraced house gardens are usually narrow strips, but they don’t need to be sad. A few raised beds, string lights, and foldable furniture do wonders.
In mine, I planted lavender and rosemary in planters from Homebase. Low effort, high reward.
16. Restore Original Features (If You’ve Got Them)
Original coving, wood floors, or tiled entryways? Show them off. They add character you can’t buy new.
If you’re lucky enough to have those encaustic tiles in the hall, protect them with sealant and a good scrub.
17. Colour-Zoning Works Wonders
Painting half-walls or using different tones in different zones can define spaces without physical dividers. Perfect for open-plan kitchen-lounges.
18. Minimal Doesn’t Mean Bland
Keep clutter low, but don’t strip away soul. A few vintage finds from Facebook Marketplace or a statement rug can keep things warm.
19. Compact Bathrooms Can Shine
Wall-hung sinks, mirrored cabinets, and vertical towel rails free up space. Add patterned floor tiles for charm.
20. Create a Cosy Reading Nook
If you’ve got a window alcove, pop in a cushion, throw blanket, and a lamp. Suddenly, you’ve got a mini sanctuary.
21. Use Colour to Add Depth
Deep navy or forest green works surprisingly well in small rooms—just balance with lighter furnishings.
22. Personal Touches Make It Yours
A stack of books balancing on a wobbly side table. Family photos in mismatched frames. A hand-thrown mug collection that somehow dominates your shelves. These quirks make your terraced house a home, not just a Pinterest clone.
23. Play the Long Game
Trends come and go, but classics—good flooring, quality lighting, neutral backdrops—last. Invest in those. Switch out the smaller accents when you crave change.
Final Thoughts
Living in a small UK terraced house means getting creative. Yes, the rooms are tight and the staircases squeak, but with a little imagination, these homes transform into warm, timeless spaces brimming with personality.
So next time you’re frustrated by your narrow hallway or tiny bedroom, remember this: it’s not about the size, it’s about the charm. And trust me—these 23 ideas will help you design a terraced house interior that feels stylish today and still lovely 10 years down the line.
Now if you’ll excuse me, I really should fold the laundry that’s been sitting on my sofa for three days… but maybe I’ll just scroll Rightmove for more terraced house inspo first.