Focusing on the supply of two-bedroom terrace houses would make more sense. More terrace houses would increase competition and the proportion of cost savings passed on in that segment. Availability and profitabilityIf two-bedroom terrace houses are profitable, why are so few built? The proportion of terrace houses was lowest – at 3-4% – when prices were high and rising fast, in the late 1970s and late 1990s. Terrace houses were not unprofitable then, but selling larger houses to those with greater ability to pay was more profitable.