Over 50% of houses in the UK are part of a terrace and making the most of their potential can turn them into a valuable asset as well as a desirable living space. Even the smallest terraced property has some scope for enlargement, and extending or remodelling could be the answer to your space problems.

To help you make the most of your terraced home, the organisers of the National Homebuilding & Renovating Show, on at the NEC from 22 to 25 March, have some great pointers for extending or remodelling.

Before You Start Think carefully about what you need extra space for and consider resale potential by talking ideas through with an estate agent. Usually, the cheapest extension is a loft conversion or a conservatory and two storey extensions should be more cost effective than one. Whilst some new building work may not require planning permission, all work will require building regulation consent from the local authority.

Internal Remodelling The original layout of the typical terraced house doesn't lend itself to modern day living and internal remodelling can bring real space gains. Removing partition walls to combine rooms or adding partition walls upstairs in larger bedrooms can give you the extra space you need and save on building costs. Even smaller terraced houses may have bedrooms large enough to allow for a small en suite shower room. This requires a space measuring only 1,000m (900mm plus 100mm stud wall) x 2,600mm.

Making An Entrance If your house is set back from the road, adding a porch gives extra weather protection and a more formal entrance. Porches are classed as extensions but can be built without planning permission if they are no larger than 3m2, no more than 3m high and no closer than 2m from any boundary facing the highway.

A Classy Conservatory A conservatory can be a great way of adding space but the design of a terraced house limits the potential size. To make the most of a small conservatory, integrate the space into the house with no dividing wall or doors. To achieve this, Building Regulations require the combined area of doors and windows to be no more than 25% of the total floor area of the house. And be careful about using up too much of your garden as it may affect resale potential.

Bargain Basements Converting an existing cellar into living accommodation will not require planning permission. Where such work requires digging down to increase the ceiling height, it will also involve underpinning work and this is not cheap. Average costs for converting a full-height cellar are £500-600/m2. Average costs for converting a cellar including digging down and underpinning are £900-1,200/m2.

Converting the Attic According to the Halifax, a loft conversion can add the most value to your home. In some instances it can be possible to recoup 100% of the amount spent. The typical cost of an attic conversion for a three bedroom terraced house is £25-35,000. Installing a combination boiler can free up space occupied by header tanks in the attic. Attic conversions often don't require planning permission and, in most instances, it's possible to add roof windows without needing consent - including rooflights and, where the roof doesn't face the highway, dormer windows.

Effective Extensions Terraced houses offer a number of different extension permutations - side return, side or to the rear. Some rear extensions will not require planning permission. Providing your house has not been extended since 1947, it can be enlarged by a total of 10% of its volume or 50m3 whichever is the greater. To check your permitted development rights, contact www.planningportal.gov.uk or www.planning-applications.co.uk.

Side Return Extensions A popular extension is to fill in the space behind the ground floor dining room. To avoid total loss of light to the middle of the house, it is usual for a side return extension to comprise a large area of glass, typically a partly glazed roof, or series of rooflights, plus a window just above eye-level. A side return extension usually only adds 1-2m width to the kitchen but this is often sufficient to transform the space.

End Terraces - Side Extensions End terraces can be worth more than mid-terrace properties, especially if they have a larger amount of garden providing space for a garage, outbuildings or a side extension. Such an extension will usually require planning permission because it brings the property closer to the highway. With planning consent, it may be possible to extend up to 1m from the boundary of the property where it adjoins the highway or right up to the boundary where it adjoins a neighbouring property, even up to a party wall in some circumstances.

A Room in the Garden Another way to add space to a terraced house is to build in the garden. Provided it is used in close association with - and not independently of - the main house, you can use outbuildings eg as a home office or a playroom. You are allowed to build over an area of up to 50% of the garden without needing planning permission, providing no part is more than 4m high (3m for a flat roof) and no less than 2m from the boundary. An outbuilding closer than 5m from the existing house will count as an extension.

VAT Savings VAT is payable on extension and remodelling work to ordinary houses at the standard rate of 17.5%. You can save on VAT by using non-VAT registered subcontractors. VAT on listed buildings is reduced to 0% for approved material alterations' when undertaken by a VAT registered contractor. Work to houses empty for 10 years or more is largely free of VAT. Work to houses empty for three years or more is charged at the reduced rate of 5% when undertaken by a VAT registered contractor. Contact Customs and Excise for more details or visit www.hmrc.gov.uk.

For more ideas visit The National Homebuilding & Renovating Show at the NEC, Birmingham from 22 to 25 March 2007. The Show offers over 500 exhibitors, the new Ecohomes Show, the Move or Improve Pavilion, the Period Living & Traditional Homes Pavilion, and 96 free seminar and masterclass sessions. The Show is co-located with the T3 Smart Homes Show and tickets give visitors entry to both events.

The Shows are open daily from 10am - 5pm. Tickets cost £8.00 in advance, £12.00 on the door (children under 16 go free). For more information call 0870 906 2002 or visit www.homebuildingshow.co.uk.