Terracotta and quarry tiles are sometimes lumped together because they are generally the same colour. The big difference between quarry tiles and terracotta is that quarry tiles are made from a brick-like, coarse material whereas terracotta is made from potters' clay which is refined and smoother. If you break a quarry tile you'll see granules of stone. As a rule, quarry tiles are smaller (between four and six inches square) and are machine manufactured, giving them a uniform appearance. Terracotta tiles are larger and have a more natural appearance although they can be machine made, semi-handmade or totally handmade.

Terracotta and quarry tiles are both good for high-traffic areas but for different reasons. Quarry tiles are very hard-wearing - which is why you'll often find them in commercial outlets, such as restaurants - and terracotta tiles improve with age, just as wooden floors do. "We've had terracotta tiles in our showroom for 10 years and they just look better and better," says Robin Moore of Regan Tile Design.

Terracotta and quarry tiles are usually used in kitchens, conservatories, lounges, dining rooms, hallways and utility rooms. Frost-resistant ones can be used on patios. Terracotta works very well with timber, especially in kitchens, for the classic French or Tuscan look. Terracotta absorbs heat so can actually be quite warm underfoot. You can also buy terracotta wall tiles to use above kitchen counters, around range cookers or in the bathroom.

If the tiles are dark, a grey grout looks best, whereas a sandstone grout is suited to light coloured tiles. Grey and sandstone grouts vary between manufacturers, so you might want to shop around to find exactly the right colour to suit your colour scheme.

Quarry tiles don't usually have to be sealed as they are fairly compressed and not too porous so they can take quite a lot of spills without getting stained. If your tiles are very old and worn they can be cleaned and sealed with a water-based sealant. If you seal waterproof tiles with a polyurethane sealer, it may peel. Terracotta tiles are treated with linseed oil and then sealed with a tile sealant (available from tile stores). Acrylic sealers dull the appearance of the tile.

Terracotta tiles are kept clean by sweeping with a broom, mopping down once a week or so and applying a coat of beeswax twice a year (this depends on whether they are in a high traffic area). They can then be buffed with a shoe shine or old towels. You need to use a special tile cleaner, soft soap or Lux flakes - a normal floor cleaner is too harsh and will remove the beeswax. If you scratch or chip a terracotta tile, rub linseed oil into the scar to bring the colour back up.

Terracotta and quarry tiles come in various natural colours. Tilestyle has around 10 colours of quarry tiles including blues, yellows and greens - they usually come in the same sort of colours as bricks, being made from a similar material. While terracotta is the name of potters' red clay, the tiles can come in colours from yellows, peaches, reds, pinks and tan.

Quarry tiles cost around £20 to £25 (€25.39 to €31.74) a square yard. Terracotta tiles range from around £35 (€44.44) a square yard upwards.

The cheaper ones, says Paul Reynolds at Natural Surfaces, are smaller while the most expensive ones he stocks are hand-made, glazed wall tiles. The cheapest terracotta tiles are the machine-made ones. The more expensive ones are made in the traditional way in a wood-fired kiln. Prices also depend on various factors including whether the tile is distressed, flamed and pre-sealed.

Handmade terracotta tiles are created from washed or untreated clay and formed in wooden moulds. They are left to dry in the sun before being put in the kiln. "This process gives them their irregular and uneven form. Some ceramic tiles imitate this look," says Paul Reynolds of Natural Surfaces, "but they still look regular and when you touch them you can tell they are not the real thing. Terracotta mellows with age and takes on an old look while imitation terracotta will never do that."

The laying of terracotta tiles is best left to a professional. There is a special knack to the job because these tiles need a deeper bed than ceramic ones.

You have to lay the tiles out in the room to decide what tiles look best where and decide where they are going to start. Tiles need to be laid on a flat surface - if there is any movement in the floor, the tiles will crack. Ideally they should be laid on to concrete or marine ply.

Terracotta and quarry tiles can be laid in a diamond or square pattern. The diamonds look busy while the squares looks more conservative. Laying a diamond pattern will usually involve more cutting and wastage. Quarry and terracotta tiles are often thick so need to be cut with a wet saw or angle grinder which you can hire.