Literally, the sentence is saying "This type of house is not pleasing to me." "This type of house" is the subject, and "I/me" am/is the indirect object ('me' is the indirect object pronoun). "gustar" and its relatives operate in much the same way 'fascinates' works in English. We usually find a way to translate "gustar" sentences as "liking" sentences, but 'gustar' does not mean 'to like,' but 'to be pleasing to,' and it takes indirect object pronouns that can be clarified by "a" phrases. "A ella le gusta este tipo de casa." = She likes this type of house.
Am I the only one who does not like the English version without the indefinite article here? Looks weird, sounds rough.
ETA: I stand corrected. Still sounds to me like the rhythm is all wrong, my foreign brain wants to insert the "a" (...this type of A house...), but the problem is mine. Native speakers apparently say THIS TYPE OF house, car, situation, system...overwhelmingly without following it with an article.