THE housing market has cooled and mortgages are harder to get, so now's the time to improve NOT move.

Not all changes will add value though but I've got the top three picks on where to splash the cash.

And you don't have to break the bank. Fork out £2,000 on the average £175,000 property and you could add up to a whopping £19,250.

According to the Council of Mortgage Lenders, fewer than 450,000 people got home loans last year-less than half the normal amount.

So now it's even more crucial to spend your cash wisely. Forget about adding POOLS, CONSERVATORIES or STONE CLADDING. In some cases these can reduce the price of your house.

Invest in the right improvements and you could make thousands when the market rallies-and here's how.

1 OFF-ROAD PARKING: Adding extra car space is simple, and can be a real selling point. If you use a non-permeable surface, such as Tarmac, you'll need planning permission if the area exceeds 5 square metres. If you use gravel or shingle, so rainwater will soak in to the ground, you don't.

COST: Around £500 for gravel or shingle, plus time and effort.

ADDED VALUE: At least up to five per cent on your property.

2 PATIOS: A well-laid patio can do wonders for desirability. Make sure you don't pave over manhole covers or drainage points, and avoid dated 'crazy paving' looks.

COST: Approximately £500 for materials for an average-size patio.

ADDED VALUE: Up to two per cent.

3 REINSTATE PERIOD FEATURES: Stripped floorboards, cornicing, fireplaces, original doors and windows all add character and value. Know what you can and can't do yourself. Call in the experts to reclaim a fireplace. But stripping your floorboards can be achieved yourself with hard graft.

COST: Under £500 for equipment hire and varnishes for floorboards, and £1,500 for restoring fireplaces.

ADDED VALUE: Up to four per cent.

Ask Louisa

Q I OWN two flats which I rent out for £400 per month each. I have deposits of one month's rent for both in a normal bank account, but I understand that's against the law. What should I be doing instead?

THOMAS, Great Yarmouth

A SINCE April 2007, if the rent you charge is less than £24,000 a year, you have to use a government-approved Tenancy Deposit Scheme. The easiest way is to get a letting agent (www.arla.co.uk ) who is registered to administer deposits to do this.

Q I AM on a two-year fixed rate mortgage until 2010. Is it best to make overpayments rather than put the money in savings as the interest rates are so low. I try to save at least £50 a month.

SIMON, Bewdley, Durham

A GENERALLY, making overpayments is a good idea as you will reduce the amount you owe and increase your equity which means you can get better remortgage deals. Make sure you speak to your lender first as there may be a limit on how much you can overpay in a year.

Got a question for Louisa? Email it to louisa.fletcher@notw.co.uk

This article has 0 comments