How designers make awkward terraced living rooms feel bigger — without major renovations

If you live in a terraced house, you’re probably aware that terraced living rooms come with their own set of quirks – such as long, narrow footprints or limited natural light. But with a little design know-how, it’s possible to turn even the smallest of lounges into a space that punches well above its weight.

It doesn’t matter if you’re working with an awkward layout or trying to make your room feel more spacious – the right living room ideas for a terraced house can make all the difference. Thoughtful colour choices, hidden storage and getting the lighting right can all transform your space without compromising on style or comfort.

So, if your space is ready for a refresh, follow these expert-approved ideas to help you take your living room to the next level.

1. Put some consideration into your colour scheme

Colour is one of the most powerful tools in a decorator’s kit, especially in small living rooms. For narrow terraced houses, the right colour palette and types of paint can make your space feel warmer, brighter, and more expansive (or cosy and cocooning, depending on what you want to achieve).

“In a south-facing living room, you can go for stronger colours and tonal drenches,” says Annie Sloan, colour and paint expert. “These rooms are lit by daylight for more of the day, so you’ll see colours more clearly – as they were developed in well-lit laboratories and under daylight lamps.” She recommends opting for muted, matt finishes that look luxurious under bright light: “Anything with a sheen can look cheap in direct sunlight.”

For cooler-facing spaces, colour takes on a different role. “In a north-facing living room, I’d go for a soft or pastel pink,” Annie continues. “The warmth of the red pigments helps balance out feelings of coldness. Pair with injections of mustard yellow to maximise the warmth.”

Bailey Williams, colour expert at Earthborn, suggests starting with the light itself. “If your room is filled with light, most colours will work well,” she says. “If it’s darker or north-facing, lighter colours will create a sense of spaciousness. Darker tones can still be effective, though – especially if you want to create a cocooning feel.”

Whichever palette you choose, always test it in the space before committing. As Annie Sloan points out, “Testing paint options in the room where you intend to use them is essential, it has a huge impact on how they read.”

Annie Sloan

Annie Sloan, CBE, invented Chalk Paint™ in 1990 and has continued to refine and improve her formula since. She is widely considered one of the world’s leading authorities in paint, colour and style.

Bailey Williams

Bailey is a colour expert at Earthborn, an eco paint brand known for its high-performance, environmentally friendly finishes for interior walls, exteriors and woodwork.

2. Go Neutral To Boost Light

If bold splashes of colour aren’t to your taste, a neutral palette can be a simple and effective way to make small or darker living rooms feel brighter and more spacious. When thoughtfully layered, these softer tones can be every bit as striking as their bolder counterparts.

“Opt for light, neutral shades on walls and ceilings to reflect more light and create an airy feel,” recommends Victoria Robinson, style and trend expert at Hillarys. “Consider using a soft white or light grey to open up the space.” These tones bounce light around the room, helping your living space feel instantly larger and brighter.

“White is the best pigment for reflecting light, so any colour in its lightest iteration can work, as it will be softened with lots of white,” adds Annie Sloan. She recommends avoiding high-sheen finishes in favour of muted, matt formulations, which create a more high-end, velvety look.

To keep a neutral-toned living room visually interesting, layer in texture through textiles, flooring and accessories. Soft greys, creams and natural materials like slubby linen or jute add warmth and depth.

Victoria Robinson

Victoria is a Product Manager, specialising in Roman blinds and curtains. She joined Hillarys in 2013 when she designed, developed, and launched the company’s first exclusive designer Roman blind and curtain capsule collection ‘Country Retreat’. Victoria is passionate about interior design trends and keeps abreast of new fashions.

3. Choose the right flooring

Your choice of living room flooring plays a big part in how light and spacious the space feels, especially in narrow or low-light rooms. From the colour of the finish to the direction of the planks, every detail can help make your living room feel more open and inviting.

“In small living rooms where space and light are at a premium, opting for lighter flooring can create a calming space that feels bigger and brighter,” says Paul Hambidge, managing director at Factory Direct Flooring. He recommends pairing lighter floors with similarly light wall colours. “A low contrast between the floor and wall colour avoids harsh horizon lines, which can make a room feel cramped.”

Natalie Mudd, co-founder of Knot & Grain, suggests focusing on plank direction to elongate the space. “To enhance the sense of space, it’s best to stick with straight planks – they elongate the floor and make the room feel more spacious.” She also points out that engineered wood flooring brings more than just looks to the table. “It allows natural sunlight to bounce around the room and adds warmth and texture, making the space feel homely and inviting.”

For those considering something a little different, Paul adds: “The ‘arrow’ pattern of a herringbone or chevron layout can create a similar effect, visually expanding the room while adding architectural interest.”

Paul Hambidge

Paul Hambidge is an expert on all types of flooring and heads up Factory Direct Flooring.

Natalie Mudd

Natalie co-founded Knot & Grain with the aim of offering customers high-quality flooring options to suit both classic and contemporary interior schemes, making Natalie perfectly placed to advise on the latest flooring trends.

4. Opt For A Layered Lighting Scheme

In a terraced house, where natural light isn’t always abundant, layered living room lighting is essential to keep the space feeling bright and inviting from morning to night.

“Choose a layered lighting scheme, with floor lamps, table lamps and an impressive central chandelier or pendant to highlight every corner of space,” recommends Danielle Le Vaillant, head of photography & film at Cox & Cox. “This not only helps banish shadows but adds a sense of rhythm and dimension to your room.”

Beyond creating ambience, a varied lighting setup also gives you the flexibility to zone your living room, useful in open-plan layouts or longer, narrow rooms where you want to create additional cosy corners or reading nooks

Danielle Le Vaillant

Danielle has worked for Cox & Cox for over 11 years. The interior design brand offers unique and characterful homeware to suit every taste.

5. Keep Furniture Light and Lifted

How your furniture sits in the room can be just as important as the style you choose. One simple – and often overlooked – design rule is to let your pieces breathe.

“Resist the urge to push furniture flat against the walls – even a small gap will give the illusion of more space," says Danielle Le Vaillant from Cox & Cox. She also recommends opting for furniture with slim profiles or raised legs to allow more of the floor to remain visible – a clever trick for creating the illusion of extra square footage.

When in doubt, avoid bulky bases or oversized proportions, which can overwhelm narrow living rooms. Instead, choose pieces that feel proportionate to the space and allow light to flow around and beneath them.

6. Make Clever Use of Built-In Alcoves

In terraced houses, living rooms often come with chimney breasts that create natural alcoves, a feature that, when used well, can unlock valuable living room storage and display space. Instead of viewing these recesses as awkward gaps, treat them as design opportunities.

"To make the most out of these alcoves, we recommend adding built-in storage and shelving," says Sophie Clemson, co-founder of The Living House. “Cupboards can also house your TV, keeping surfaces clear and clutter-free.”

This type of built-in joinery is especially useful in smaller spaces, where every centimetre counts. “Built-in alcove storage is excellent – you can have closed cupboards to hide anything away, with shelving above to display accessories and books,” Sophie adds. “They can also add character to your home, especially if you incorporate edging and decorative detail with architrave or panelled doors.”

To keep the overall look light and balanced, consider painting alcove joinery in the same tone as your walls, or choose a tonal contrast to frame the fireplace.

Sophie Clemson

Sophie is the Co-Founder and Director of The Living House, with over eight years of interior design experience helping homeowners make the most of compact and characterful spaces.

7. Incorporate Textures To Add Depth

In many terraced homes, especially those that have lost their original features or were built more modestly, living rooms can tend to feel flat or boxy, so consider using different textures as a way to add subtle architectural interest.

Living room panelling, limewash paint finishes, or exposed brickwork can all bring a sense of depth and craftsmanship to otherwise plain living room walls. These tactile surfaces introduce character without eating into floor space. But if structural changes aren’t on the cards, use texture in larger furniture pieces or anchoring elements like a wool rug or boucle sofa to ground the space.

8. Choose Multifunctional Furniture That Works Harder

In a compact living room, furniture needs to earn its place. Multi-functional pieces not only save space, but help keep your room looking effortlessly tidy in the process.

“Choose furniture that is designed with storage built in," recommends Danielle Le Vaillant from Cox & Cox. "Coffee tables with drawers and shelves can be used for books and magazines, while pretty nesting baskets can hold throws and extra cushions to avoid the sofa looking over-cluttered when not in use.”

Sue Jones, co-founder of OKA, agrees, adding: “If you're looking to store throws and cushions, a larger upholstered ottoman that complements the room's aesthetics is a good choice. It can also double as a footrest or even a coffee table with a strategically placed tray.”

Sue Jones

Sue Jones, along with her friends Annabel Astor and Lucinda Waterhouse, founded OKA in 1999, a British brand known for its distinctive furniture and lighting. Sue’s global travels have shaped her unique style, which continues to influence every aspect of the brand, reflecting her passion for timeless, eclectic design.

9. Install A Feature Gallery Wall

If your terrace living room lacks architectural features, a well-planned gallery wall can become the focal point your space is missing. In long, narrow rooms, these feature walls help draw the eye upwards and outwards, making the space feel taller and more expansive.

Gallery walls can also anchor a seating zone or reading nook without the need for physical room dividers, making it a practical styling tool, too. Make sure you vary your frame sizes, add depth with a mix of artwork and mirrors, and stick to a cohesive colour palette to keep the look intentional rather than chaotic. Victoria Robinson from Hilarys also recommends using “different shades or complementary colours to define areas within the room.”

10. Choose simple window treatments

In terraced homes, where windows are often smaller or confined to one wall, the right window dressing can make a world of difference. Rather than weighing the room down, your choice of blinds or curtains should work with the natural light, not against it.

“Opt for light-coloured curtains in shades like soft whites, creams or pastels to help reflect natural light and create an airy atmosphere,” says Victoria Robinson from Hillarys. “Sheer fabrics can also be an excellent choice, as they allow light to filter through while maintaining privacy."

For a more structured look, Sam Tamlyn, managing director at California Shutters, suggests installing shutters. "Adding shutters to a terraced house living room offers homeowners complete control over lighting levels, allowing them to create desired moods throughout the day,” Sam explains. “A combination of off-whites, greys and natural textures like wood through shutter design can establish the perfect zen living space.”

Sam Tamlyn

Sam is MD of California Shutters and is an expert in advising on top quality solutions for dressing windows in every room, including bespoke designs.

11. Use Mirrors To Maximise Space and Light

“A decorator’s secret weapon, mirrors are more than a practical object in which to check your own reflection,” says Sue Jones from OKA. “When used correctly, a beautiful mirror can be used to amplify light, add drama, create interesting reflections and frame views.”

Sue recommends placing mirrors opposite or beside a window to bounce natural light deeper into the room. “No matter how grey the sky is outside, it will harness any available daylight,” she explains. “The bigger the mirror, the brighter and larger the space will feel.”

You can also use mirrors to enhance ambient light from lamps and wall sconces, giving your evening lighting scheme extra glow. For best results, choose a mirror that’s around two-thirds the width of the console or mantel it hangs above.

12. Style your space with intention

Styling a living room with intention can make all the difference between a space that feels curated and one that feels cramped.

“I love the idea of decorating one with a statement lamp; it’s such a simple way to bring a pop of colour and create a welcoming ambience,” says Sue Jones from OKA.

When styling open shelving, don’t be afraid to leave some breathing space on shelves or tabletops. Negative space is just as powerful as the pieces you display. Use trays to group smaller items, vary heights for visual interest, and lean into materials like glass, metal or ceramic to add texture without overwhelming the space.

For more inspiration beyond terraced homes, explore our favourite modern living room designs,browse the best living room paint ideas, or take a look at these inspiring living room layouts.