When I first looked at it I thought it was obvious why it was built on a terrace. The ground between Mill Street Yates Street, Corn Street and what was once Beaufort Street is very uneven ground.
Yates Street is on a hill and the idea of the terrace was so that all the houses could be at roughly the same level.
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Look at this Googlemap Image and count the number of steps at one end of Yates Street:
http://maps.google.co.uk/maps?f=q&so...102.09,,0,2.79
I count about 15 steps.
And the other end:
http://maps.google.co.uk/maps?f=q&so...63.36,,0,11.97
I count about 8 steps.
You can also see that Corn Street (the street next to Yates Street) has a terrace in it.
http://maps.google.co.uk/maps?f=q&so...65.63,,0,11.29
But because the ground naturally rised higher than in Yates Street, the terrace ends half-way along the road.
http://maps.google.co.uk/maps?f=q&so...18.83,,0,13.92
If they hadn't built the houses here on a terrace the ground floor rear-windows of Corn Street would've looked directly into the upstairs rear-windows of Yates Street.
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