Giving your home a makeover to make it 'greener' does not just have a positive effect on your bank balance - it can also boost your mood, according to Mindlab International.

Dr David Lewis, a chartered psychologist and founder of the independent research consultancy, said waking up and living in bright and cheerful surrounds can improve our state of being - so homeowners might like to fit dimmer switches and chrome sockets to their rooms in order to perk up a shabby decor.

"The idea of the home being transformed is a very powerful, emotional thing for people in this country. Home is where the heart is and where you feel safe after a hard day at work. It's where you can kick your shoes off and feel safe and secure," he pointed out.

"One of the reasons you feel safe and secure is because you are in very familiar surroundings, and if your surroundings induce a positive mood then so much the better."

Dr Lewis' comments came after research from Lloyds TSB found that spending on do-it-yourself projects fell to a record low last year as the financial crisis hit householders in the wallet, with British consumers shelling out a total of £7.8 billion in 2011 - around £300 per household.

This worked out as a 17 per cent fall in real terms, while spending on home maintenance (including tradespeople's fees) dropped by ten per cent.

Suren Thiru, housing economist at the financial institution, commented: "Consumers have been experiencing the biggest squeeze on their discretionary income for over a year. Couple that with a very subdued housing market, and it is unsurprising that so many are cutting back on home improvements."

Of course, some home improvement projects cannot be deterred even if homeowners are running low on cash: holes in the roof can get bigger and let in rainwater and pests, a faulty boiler can be dangerous for occupants while a broken window pane can increase security issues.

If householders are struggling with their utility bills, it might be financially astute to fit LED light bulbs to cut electricity costs.