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How to build the ultimate living room for under £500

Want to create your dream living room without needing to extend the mortgage?

Then check out this handy guide to get you every bit of kit you need for less than £500. Prices are correct at time of writing.

We’ve got a high-definition TV, Blu-ray player, Sky+HD box, phone, digital photo frame and even something that will help you clear up the mess after a long lazy day testing them all out.

Samsung P2270HD 22” Full HD LCD TV – £199.99

OK, so I’ve blown half the budget with the first purchase – but a TV is the centrepiece of every lounge. Although with this 22 inch screen you will need to compromise on size, this does not compromise on style or picture quality. Samsung sets are rated by many as the best TVs on the market. This ultra-slim unit has 1080p high-def and a dynamic contrast ratio of 50000:1.

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Sky Television Starter Kit – £30

Now you have the TV, why not get some glorious high-definition channels to watch on it. This kit gets you a free Sky+HD box and covers the costs of standard set-up for new customers with existing ones taking the self-installation option. You even get £50 cashback when you sign up, but those on a strict monthly budget should note you do need to commit to a year-long contract costing at least £28 a month.

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Philips BDP 3000 Blu-ray Player – £129.99

Another ‘must-have’ purchase for any living room in 2010 is a Blu-ray player – sticking to a regular DVD machine would be like buying a typewriter instead of a laptop. Blu-ray discs play in high-definition, five times better picture quality than before, and this player even ‘upscales’ your existing DVDs to give them more detail. Of course, that quality comes at a price, but there’s £50 off this right now.

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Temium 1.2 HDMI Cable – £9.99

The most boring product you’ll find on this list but also the most essential. An HDMI cable connects your Blu-ray player to the TV so you can actually watch it.

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Apple MC552ZM/A iPad Dock Connector to VGA Adapter – £25

Want yet another use for your TV? This handy cable lets you connect up your Apple iPad to view videos and slideshows on the big screen.

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Proline CR71IP Clock Radio – £16.99

With three quarters of our cash spent on home entertainment, it’s time to pick up a couple of real bargains for elsewhere in the living room. This clock radio doubles as an iPod music-playing dock and costs just £14.99.

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Proline PL-DPF706 BLK Digital Photo Frame – £24.99

Another bargain to be found is this sleek black frame. Just slot in a memory card from your camera and it will display your favourite photos in a slideshow format. It’s great for the window sill.

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Temium USB Charger – £14.99

Once you’re all comfy in the living room, you won’t want to leave the sofa for something silly like finding a charger. Just plug this gadget in permanently to the wall and swap USB leads to provide power for your mobile, iPod, MP3 player and any other item that charges via USB.

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BT Studio 4100S – £15.99

Proving once more that affordable doesn’t mean low quality is this stylish, feature-packed landline phone from BT. Best of all it is cordless so you won’t need to get up to answer it.

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Hoover SP60DWR6 Handheld Cleaner – £24.99

After a day spent in your new living room, you may have some crumbs and crisps that need picking up off the floor and this mini Hoover does a much better job than a dustpan and brush – and it’s much quicker too.

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This selection comes to a bargain-busting £494.92, which means you’ve still got £5.08 left to buy some popcorn, fizzy drink and maybe even a bar of chocolate. Bonus!

* Prices correct at time of publishing