How about:

;With JoinedData as (
    Select t1.ReferenceNo, t2.TypeId, t2.Reference, t2.Description
    from t1
    join t2 on t2.TypeId = t1.TypeId and t2.Reference = t1.Reference
)
Select
    COALESCE(t60.ReferenceNo, t61.ReferenceNo) as ReferenceNo,
    t60.Reference as NoOfBedroomsReference,
    t61.Reference as ZoneReference,
    t60.Description as NoOfBedrooms,
    t61.Description as Zone
  
from (
    Select *
    from JoinedData
    where TypeId = 60
) t60
full outer join (
    Select *
    from JoinedData
    where TypeId = 61
) t61
    on t61.ReferenceNo = t60.ReferenceNo
order by ReferenceNo, t60.Reference, t61.Reference

The same without using a CTE (Common Table Expression):

Select
    COALESCE(t60.ReferenceNo, t61.ReferenceNo) as ReferenceNo,
    t60.Reference as NoOfBedroomsReference,
    t61.Reference as ZoneReference,
    t60.Description as NoOfBedrooms,
    t61.Description as Zone
from (
    Select t1.ReferenceNo, t2.TypeId, t2.Reference, t2.Description
    from t1
    join t2 on t2.TypeId = t1.TypeId and t2.Reference = t1.Reference
    where t1.TypeId = 60
) t60
full outer join (
    Select t1.ReferenceNo, t2.TypeId, t2.Reference, t2.Description
    from t1
    join t2 on t2.TypeId = t1.TypeId and t2.Reference = t1.Reference
    where t1.TypeId = 61
) t61
    on t61.ReferenceNo = t60.ReferenceNo
order by ReferenceNo, t60.Reference, t61.Reference

For each ReferenceNo, this takes every number-of-bedrooms attribute value and cross joins it to every Zone attribute value.

Results:
| ReferenceNo | NoOfBedroomsReference | ZoneReference | NoOfBedrooms | Zone |
| ------------ | ------------ | ------------ | ------------ | ------------ |
| 25253 | 1 | null | Studio | null |
| 30765 | 1 | 3 | Studio | Zone 3 - Central |
| 33061 | null | 1 | null | Zone 1 - East |
| 34037 | 6 | null | 5 bedroom | null |
| 35532 | 5 | null | 4 bedroom | null |
| 35750 | 1 | 2 | Studio | Zone 2 - South |
| 35750 | 1 | 4 | Studio | Zone 4 - West |
| 35860 | 6 | 2 | 5 bedroom | Zone 2 - South |
| 35909 | 4 | null | 3 bedroom | null |
| 35936 | 5 | 2 | 4 bedroom | Zone 2 - South |
| 35965 | null | 1 | null | Zone 1 - East |
| 36080 | 4 | 2 | 3 bedroom | Zone 2 - South |
| 36080 | 4 | 4 | 3 bedroom | Zone 4 - West |

Only the 35750 and 36080 ReferenceNo values are repeated, because they have multiple values for the same attribute.

See this db<>fiddle for a working demo.

You could use window functions with your query as the following:

SELECT t1.Reference#, 
       t1.reference,
       t1.TypeId, 
       MAX(CASE WHEN t1.TypeId = 60 THEN t2.description END) OVER (PARTITION BY t1.Reference#) AS [No of Bedrooms],
       CASE
        WHEN t1.TypeId = 60 AND COUNT(CASE WHEN t1.TypeId = 61 THEN 1 END) OVER (PARTITION BY t1.Reference#) = 1
         THEN MAX(CASE WHEN t1.TypeId = 61 THEN t2.description END) OVER (PARTITION BY t1.Reference#)
        WHEN t1.TypeId = 61 
         THEN t2.description
       END AS [Zone]
FROM table1 t1 JOIN table2 t2 
  ON t1.TypeId = t2.TypeId AND t1.reference = t2.reference
ORDER BY t1.Reference#, t1.TypeId, t1.reference

See demo