make error

I have written a simple kernel module with only init and exit modules.
When I fire make command I get the following error:

make -C /usr/src/linux-2.6.32 SUBDIRS=/home/LDD/LDD_Practice modules
make[1]: Entering directory `/usr/src/linux-2.6.32'

/bin/sh: cannot create /home/LDD/LDD_Practice/.tmp_versions/ldd1.mod: Permission denied

make[2]: *** [/home/LDD/LDD_Practice/ldd1.o] Error 2
make[1]: *** [_module_/home/LDD/LDD_Practice] Error 2
make[1]: Leaving directory `/usr/src/linux-2.6.32'
make: *** [default] Error 2

What might be the cause of it and how to resolve it?
FYI I have the root permissions.

Running as root means you can change the permissions, it doesn't bypass them. You shoud run make as the owner of the directory not as root. Otherwise any files you create will not be owned by the directory owner which will cause problems.

This may help:
http://www.math.hmc.edu/computing/support/permissions/