When we first started to target domestic accounts, I found that most work was coming from word of mouth and parish council news letters. Parish council newsletter are a cheap way of advertising, my ad in one is approx £150 a year, and it certainly has paid for itself.
It is also worth while getting your company on the approved traders list with your local County Council, your company name is part of a list that is then given to members of the public that need general assistance with duties, mainly the elderly and disabled. We have picked up quite a lot of work this way.
Advertising in the local rags can be hit an miss, some weeks you get a few calls all on the same day, and then nothing for a month. I would not advise against it.
Leaflets are exactly the same I deliver them in batches of approx 400 at a time, and some days you dont even get a bite, last week I had three calls from the same road, and only delivered 50 that day.
Hope this helps
Paul