Those with a basement or attic could also utilise the space as long there is sufficient light and warmth. Major renovations can cost the earth, however with a little ingenuity a small space can be transform into a haven in which to relax and unwind.

To achieve a simple yet stunning look on a budget opt for stripped floor boards. If you are fed up with natural wood looks or if your floor boards are not in very good condition you could always paint them! Paint manufactures have developed paint which is designed to take the tough treatment floors can get or for a cheap alternative simply use an emulsion and repaint it when it begins to look tatty!

Choose a bright colour to inspire your hobby or pass times. Nautical themes are great for bringing a sense of fun and memories of the sea, holidays and sunny days. If your hobby is more sedate or you just want a space to relax with a book opt for neutral or pastel tones to create a sense of serenity.

Add simply and unfussy window dressings which allow masses of natural light to flood into the room. It is surprising just how much natural light there is even on overcast days! Keep to light weight curtains which offer a light and airy ambience to the room.

Select furniture which is comfortable and practical! One of the latest interior design trends is the ‘shabby chic' look which enables you to have an a miss mash of odd pieces of furniture within the same room. Try and keep to only two colours for walls, ceilings and floors as this will enable you to inject colour by using natural products such as vases of seasonal flowers or brightly coloured cushions and throws.

Create wonderful lighting effects during the evenings with a collection of small and large table lamps. One key factor is to keep clutter to a minimum otherwise your dream space will end up looking like a 'tip' and whilst ‘shabby chic' enables you to have old and new sitting side by side and look stunning, it does not give the go-ahead for mess!

The great thing about this style of room design is that it can be achieved on a very small budget. Scour junk shops, visit boots fairs and garage sales, take heed of the old saying ‘one man's junk is another man's treasure'!

If you need to invest in something new it should probably be a lamp as you need to be sure that it is safe and works!

Beautiful mirror lamps are a great way to achieve some wonderful diffused lighting effects. Opt for modern styles which have large white shades if you need plenty of good light to work by. Alternatively use small and delicate lamps for relaxation areas.