Not only are builders and tradesmen suddenly available, but their prices have finally become competitive, writes Caroline Madden

EVERY CLOUD has a silver lining, even the current construction slump. During the building boom, householders learned to live with leaking baths, half-painted walls and unfinished shelves as they waited in vain for tradesmen to turn up when promised.

Now the tables have turned and consumers find themselves fending off a deluge of plumbers, painters, electricians and fitters eagerly plying their trade.

Not only are builders and tradesmen suddenly available, but their prices have finally become competitive.

So is this the perfect time to get that extension, attic conversion or conservatory you've been dreaming of for the last decade?

Certainly from a price perspective, this is a good time to carry out home improvements. Martin Whelan of the Construction Industry Federation (CIF) says that the availability of skilled labour means that householders can negotiate good deals, although any savings will be tempered by the rising cost of building materials.

There has been a significant rise in the amount of repair, maintenance and improvement work being carried out in the residential sector over the last year or so, as homeowners decide to go ahead with work that they deferred in the past because of the difficulty in pinning down a builder.

"What we're seeing throughout the country is that while there has been a decline in the number of cranes, we've definitely seen a pick-up in the number of skips outside houses," says Whelan.

Before you call in the architects or start knocking down walls, however, there are a number of key issues to consider, besides cost.

For example, while the improvements may enhance your lifestyle, will they actually add value to your home, or improve its saleability? Will you get any return on your investment given the perilous state of the property market?

It comes as no surprise that Whelan is a staunch advocate of home improvements. "Extensions will make a real difference in terms of your ability to sell the property and the time in which you sell, and that's just a proven fact from property markets around the world," he insists.

"Any improvements that are made to homes will ultimately bring benefits when the person decides to sell the home, as well as obviously when they live in the house."

Don't expect to recoup your investment in full though, if at all.

According to the Irish Auctioneers and Valuers Institute (IAVI), the rule of thumb previously was that you would be doing well to recover half the money spent on an extension or modification.

This is no longer the case in the current buyers' market.

Purchasers really want a home that they can adapt to their own taste, says a spokeswoman for the IAVI.

Therefore to get most value for money, any work carried out should have a very, very broad appeal "because first impressions are really counting in the market now".

Generally speaking, though, the IAVI wouldn't advise any non-essential construction work, such as extensions or alterations at the moment.

Not surprisingly Michael Grehan, managing director of Sherry Fitzgerald, encourages homeowners to consider the option of trading up to a larger home before they go ahead with an extension.

With the money you have to play with, make sure that you can't get better value by trading up, he advises.

Of course, the question of whether or not you will see any return for your investment is a moot one unless you can actually finance the project. Builders' prices may have come down, but so too have property prices.

This means that the amount of equity (the difference between the current value of your home and your mortgage) in your home will most likely have shrunk.

Top-up mortgages are the most common source of finance for home improvements. However, the top-up loan your lender is willing to extend depends, among other things, on the amount of equity in your home, so you may find it harder now to borrow the amount that you had in mind.

Borrowers must also beware of a pitfall that could potentially catch them out should property prices continue to fall. Before agreeing to top up a customer's mortgage, lenders normally get a valuer to provide two figures - the current value of the house, and an estimate of its value post-renovation.

If the top-up is approved on the basis of these valuations, the borrower typically receives the loan in stages as the work progresses.

The danger is that the value of the property may fall while the work is being carried out. If the final value of the house is less than the projected valuation, you could be exposed to the shortfall, as the bank may not lend you the full amount initially approved.

Try explaining that to the builders waiting to get paid.