Buyers of the new Honda Civic have good reason to feel they have gone up in the world.

The five-door Swindon-built supermini is a little shorter but much taller than the previous model.

Honda says it used an 'inside-out' approach to design the car, concentrating on getting the room and feel of the cabin right before bothering about the external looks - and the approach has paid off.

The instant reaction of anyone opening a door is how much space there is inside such a compact body.

An extended wheelbase pushes the wheels further towards the corners of the body, resulting in shorter front and rear overhangs.

Together with a short nose design - thanks to new front suspension, a high-mounted steering rack and a compact engine bay - this frees more space inside the cabin for occupants and luggage.

In addition, a new compact suspension set-up at the rear combines with clever underfloor packaging, including a resin fuel tank moulded to fill the space available, to give a flat cabin floor without a central tunnel.

Another feature that instantly attracts attention is the fascia-mounted gearshift. It's simple, slick and easy to use and clears the floor. Honda says that makes it easy to walk from front to rear and front to back, but this is not a people carrier, so I wonder just how useful that really is.

The new Civic is the seventh generation to carry the name of Honda's most successful-selling car in Europe and prices range from £11,995 to £13,995.

The latest version drives well and is stuffed with noise-deadening ideas to deliver a quiet, refined ride. The fit and finish, always a Honda hallmark, is visible with tight shut-lines between body panels, enhancing the quality look.

The car got off to a flying start this year when What Car? Magazine voted the compact five-door hatchback its class champion for space, comfort, ride, equipment levels, price and residual value. It also rated it Britain's most comfortable car.

Three trim levels are available - S, SE and SE Executive (no 1.4 SE Executive) - and all Civics come with a three-year/90,000 mile warranty package.

The five-door sports new four-cylinder 1.4-litre and 1.6-litre engines that are more refined, more economical and cleaner than before.

The test model sat at the top of the range with a 110 horsepower 1.6-litre engine and all the bells and whistles inside from air-conditioning and CD player to leather upholstery and alloy wheels.

Both engines can be matched to either five-speed manual or four-speed automatic transmissions in all but the entry-level 1.4i S model.

The new Civic is Honda's first volume model in Europe to feature electric power steering, the benefits of which include enhanced fuel economy and smoother operation.

Standard equipment for the entry-level S-grade models includes driver and front passenger airbags, side airbags, anti-lock brakes, rear centre three-point seatbelt, manual air conditioning, electric front windows, electrically-heated door mirrors, deadlocks and an immobiliser.

Later this year the three-door models will arrive, including a sensational 200 horsepower Civic Type-R, along with a coupe.

Honda will also launch its Stream compact multi-purpose vehicle to take on the brilliantly designed and compact Renault Scenic and Vauxhall Zafira, which also make the most of the race for space. AUTO FACTS Honda Civic 1.6 SE Executive

Price: £13,995 on the road

Fuel consumption:

Urban - 33.2mpg

Extra urban - 51.4mpg

Combined cycle - 42.8mpg

Maximum speed: 114mph

Length: 428.5cm/168.7in

Width: 169.5cm/66.7in

Comfort: Excellent

Luggage space: 11.4 cu ft

Fuel tank capacity: 60 litres/13.2 gallons