I live in a small terraced house, with a sea view, and love my hilly neighbourhood. I don't think people are bothered about size of house, we just enjoy being close to everything on offer..
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. To me, the location is the important thing, and where we live has exactly what I want (apart from a sea view, but as we are miles from the sea it would take a natural disaster to achieve that). We are on the flat, near to amenities and transport, have gardens and a garage (the latter not always being available in older houses), plenty of space and we are very happy here. 