MANY homeowners may be considering making extra cash from their home by taking their first steps on the hospitality ladder.

Turning your home into a B&B is more complicated than simply sticking a notice in your window, says the National Federation of Builders.

In addition to finding the room to house guests, there are regulations to fulfil, mortgage lenders to comply with and insurers to satisfy.

Paul Kendrick, spokesman for the National Federation of Builders, said: “If you’re planning an extension to fit an extra room in, or are planning to knock down existing walls, it's important to ensure all work is carried out by a reputable builder - not just to protect your investment but also to satisfy the necessary insurance and legal procedures.”

Even minor alterations can require planning permission, warns the NFB. So it's vital to check with your local council's planning department before any work begins.

A reputable builder will be able to advise homeowners on whether the project will need planning permission and whether it complies with regulations.

Remember that planning permission rules are different if the property is a listed building or in a conservation area.

Mortgage lenders also need to be notified if homeowners are planning to use their home to generate extra income.

Lenders will also insist on a recognised certificate that guarantees the standard of any building work that is being carried out.

Two publications, called “Avoid Cowboy Builders” and “Finding the Builder Who's Right for You”, are available free from the National Federation of Builders, Construction House, 56-64 Leonard Street, London, EC2A 4JX. Tel 0207 608 5150.

The Department for Transport, Local Government and the Regions has a free leaflet, called “Letting out Rooms in Your Home.” Copies can be obtained from any Citizen's Advice Bureau.

The English Tourism Council also has a practical guide, known as the Pink Booklet, which covers all the regulations for England. For further details, contact 0870 606 7204.