The housing market slump means homeowners must think of new ways of adding value to their properties, and many are now trying to make the most of the space they've got.

Latest government statistics, released in July, show that UK house prices fell by 1.6 per cent over the 12-month period to May 2011, and by 0.5 per cent in that month alone.

The figures also revealed that average prices dropped during the year in England (-1.3 per cent) and also decreased in Wales (-6.1 per cent), Scotland (-2.5 per cent) and Northern Ireland (-13.2 per cent).

As a result, homeowners are now turning to a new business, which was founded to help solve the problem.

"This crash in house prices has made it harder for people to move home. As a result, one trend increasingly being seen is the idea of a 'detached extension', or an extra room built in the garden, as the way to create extra space and value to the property," said Nigel Smith, owner of Solihull-based, My Room in the Garden.

The company, founded in June, designs and builds detached garden studios and rooms that can often be built without the need for planning permission.

"In as little as a week, an eco-friendly room can be built, fully plastered, decorated, lit and floored, ready to be used. This is because these buildings are constructed using pre-prepared sections of Structural Insulated Panels (SIPs), a common technique used in the USA, and something that is spreading across the UK," explained Nigel.

"The structure is permanent, robust and highly insulated, which makes it cheap to run. The cost of a garden room varies with the size of the construction, but prices start from £10,000, and these structures can add significant value to your property," added Nigel.

The company uses environmentally friendly SIPs that can be configured to function in many different ways, making for an adaptable design process. What's more, SIPs allow for much better insulated space - meaning the garden rooms are much cooler than conservatories in the summer, and a lot warmer in the winter.

The garden rooms use foundations that comprise of concrete pads and wooden ring beams, and are built to last for many decades. These foundations use 95% less concrete than slab foundations - so are eco-friendly, but still provide a sturdy basis for your garden room.

Unlike conservatories or extensions, garden rooms don't require planning permission or an application for specific building regulations - as long as they are no taller than 2.5 metres, and are at least 2 metres from your land boundary, and they don't contain a WC, or are used as a bedroom.  

Nigel is offering a week's free holiday accommodation, subject to terms and conditions, in the Costa del Sol, Spain, with every new order placed by the end of October.