Free trader should cover empty college houses like this (8)
I believe the answer is:
Here is my best explanation:
'houses like this' is the definition.
'free trader should cover empty college' is the subsidiary indication.
'free' is an anagram indicator.
'should cover' is an insertion indicator.
'empty' suggests removing the centre.
'college' with its centre removed is 'ce'.
'trader' anagrammed gives 'terrad'.
'terrad' enclosing 'ce' is 'terraced'.
(Other definitions for terraced that I've seen before include "Like row of joined houses", "(Of land) rising in steps", "(Of houses) built linked in rows", "Some houses" and "Retraced like row of contiguous houses".)