The average size of a new-built, three-bedroom home in the North East is currently 85.4 square metres (sqm).
That's almost eight square metrees smaller than the Government's own guideline of 93sqm - the equivalent of the size of a large bathroom.
And official statistics show that new-built homes are now nearly 10 sqm smaller than those built in 2003 when the average was 98.8sqm outside London.
This is the equivalent of some 'micro-apartments' currently being sold in Paris.
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Housing space also differs depending on which part of the UK you live, according to research by Storefirst.com.
Despite having the most expensive properties in the UK, the average three bedroom property in London is now 25sqm bigger than those being built in Yorkshire.
This means that on average, each new three bed home in Leeds, Scarborough or York is missing out on the same size space as a double bedroom or a family room.
Properties in the East and the South East of England are just meeting the nationally described space standard, with average properties coming in at 93.5sqm and 93.9sqm respectively.
The smallest house sizes were found in the North East of England and Yorkshire and Humber, with floor spaces in these parts of the country coming in at 85.4sqm and 84sqm.
To gain a full picture of the floor space trends occurring in houses across the UK, Storefirst.com collected research from the Royal Institute of British Architects, financial services firm LV and Rightmove.
Although the average space of a UK home is decreasing, the average price for a house is steadily on the rise.
The latest figures show that house sellers are currently demanding £289,452 for the average home in England or Wales.
That price is almost £20,000 higher than in 2014, which saw house prices sitting at £269,477 at the end of the year.
Oliver Kitson from Storefirst.com commented: "We can see from this data that not only are house spaces decreasing, but there is also a huge disparity between different parts of the UK.
Homeowners are paying more for their homes but getting less space to call their own.
"If the nationally described space standard was to be enforced as a rule rather than a suggestion, prospective buyers and renters would feel secure that they're getting the right amount of space for the price they're paying."
A spokesman for the Home Builders Federation said: "Demand for new homes has risen steeply in recent years, in particular from first time buyers and the industry has responded and dramatically increased output, delivering tens of thousands of additional desperately needed new homes."