Terry believes the team will have to go on their best run of form for years if they are to have a hope of bridging the 11 point gap to League leaders Manchester United to win the title.
He said: "Let's not mince our words, after losing to QPR and Swansea, and letting a two-goal lead slip against Southampton, our home form is simply not good enough for a club like ours.
"If we keep performing the way we are and keep failing to pick up results, Man United are going to run away with it and, for Chelsea, in the middle of January, that is not acceptable.
"We know our fans will always stick by us - it's been disappointing for us all lately, but we have to pick ourselves up now and put together the best run of games that we have done over the last few years.
"If we go on a run now, we can then hope that Man City and Man United drop points, but the main thing at the minute, for me, is making sure that we are playing Champions League football next season. That is the minimum requirement for a club like ours, with the players we have."