James Rossiter, Property Correspondent
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Britain’s first carbon-neutral village will be built on a former state-owned site being auctioned by the Government.
English Partnerships, the land quango, has drawn up a shortlist of five housebuilders to bid for the site, on the outskirts of Bristol, where the Government wants a new generation of energy-efficient housing built.
The aim is to build 150 super-energy-efficient houses about six years ahead of the Government’s deadline for ensuring that all new housing is carbon-neutral.
Barratt Developments and Taylor Wimpey, Britain’s two largest builders, are vying for the contract, along with MJ Gleeson, a rival quoted builder; Edward Ware, a private firm; and Places For People, a housing association, The Times has learnt.
The scheme will provide a bench-mark for both the Government and the housing industry to calculate how much of the higher costs associated with so-called eco-housing can be passed on to homebuyers.
All new homes built from 2016 must be carbon-neutral, according to new rules issued in March.
However, English Partnerships has declared that it will only sell the land near Bristol to a housebuilder that can produce this new breed of energy-efficient housing.
The Bristol site, dubbed Hanham Hall, could be completed within three years - six years ahead of the official target.
Housing sources said that some of the larger bidders may build the homes as a loss-leader, absorbing the extra costs of installing energy-efficient devices as a marketing tool for what is expected to be a booming sector in five or six years’ time.
The Government has also promised to free up swaths of state-owned land over the coming years to ensure that the country can raise its annual housing output to about 225,000 new homes a year, up from the 180,000 currently built each year.

But much of that new land is likely to be sold only to housebuilders that can prove their green credentials and guarantee to build carbon-neutral homes.
Barratt has built its own mini eco-village of seven houses in Chorley, Lancashire, to try to gauge both the cost of building energy-efficient homes and the energy savings they will produce.
The cost of making a typical home carbon-neutral in the Bristol area could add between 10 per cent and 20 per cent to the total build costs per plot, according to one chief executive of a housebuilding company who has examined the scheme.
“The extra cost could be £20,000 to £30,000 per plot. So, say for 150 homes, that is an extra £4.5 million. That may need to be subsidised in the sale. I don’t think English Partnerships will want to discount the sales price either,” he said.
Land in the Bristol area is selling for between £80,000 and £90,000 per unit.
Confirming that Barratt Homes had made the shortlist, Ralph Hawkins, its development director, said: “Barratt is extremely keen to deliver this development, not least because we have outstanding experience of implementing green technologies at our eco-village in Chorley.”
The extra technology needed to make a house carbon-neutral can include wind turbines, underfloor heating, solar panels, and even digging bore holes for tapping the earth’s natural heat from deep underground.
Barratt has calculated that the annual energy savings from these extra eco-friendly devices could be about £600 per year for a four-member family.
Greg Fitzgerald, chief executive of Galliford Try, a housebuilder not bidding for the Bristol site, said: “The big question is: will a housebuilder think he will get more for that three bedroom house which is being marketed as zero-carbon?
“My own feeling is that they [house-buyers] are not ready yet [to pay more]. I think, however, that the whole cost of zero-carbon homes will come down as their popularity takes off and land prices eventually will not be affected.
“People will in five or six years be more environmentally conscious. The more we as an industry do it, the cheaper it will become.”
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comment to all regarding Nick's note on the additinal cost of installing carbon neutral technology.
It is wrong to assume that the house builder sets the price for the homes he sells. As new housing is less than 10% of what's sold each year, the sales price is dicated by the second hand market. The price at which he sells a 3 bed house at is set by his competition - the second hand market, and not what is costs him to build. As his profit is set by his business strategy and the costs of construction are set by regulation then the only thing that can give is the price he bids for land. Ultimately, the only losers form the mvoe to carbon neutral housing will be the land owners -and about time too.
Jack Lemon, Northampton,
Nothing has been said in this article about the materials that are used in a "carbon neutral" dwelling. No doubt the government, English Partnerships et al are aware of the amount of energy used to produce a ton of cement, 1,000 bricks, 100 yards of steel pipe etc. Apart from pure gimmicks such as roof mounted wind turbines, none of the applications advocated in the optimal carbon neutral dwelling is anything other than common sense and despite the prognostications would not add much to the cost of a single unit. A more meaningful and long term result would be achieved from changing the way the raw materials are manufactured. delivered and deployed.
Matthew Cartisser, Moscow, Russian Federation
The house will gererate more cardon to produce because of the extra equipment included into the homes. (either in manufacturing the components or in transporting them to the site). Also they need to ensure that items manufactured outside the UK are counted towards the house carbon footprint, and include normal replacement of the compants after a normal life. What is the payback time until they equal a house built to the current regulations.
paul stevens, waterlooville, uk
Alan Mackay, your comment is a very naive view of business and the building sector. House Builders, (like all businesses) aim to maintain and increase their existing profit margins.
When house builders look to purchase land, they will calculate their profit margin based on curret house prices, land prices and build costs - not what they expect the house to be worth in say 12 months time once built. For example, if land costs = £60k, build costs = £25k, and the current market value of the house = £100k, the builder will be hoping to make the £15k as profit, in otherwords a 15% profit margin. Any extra costs related to 'Green Housing' will increase build costs and in order to maintain their margin, the house builder will have to pass the costs on to consumer and, for example, increase the house price to £110k.
Any additional profit made due to a rise in house prices is fortunate and will be of benefit to the builder but they also take the risk should house prices fall.
Nick, London, UK
The model shown here (and indeed all of Barratt's eco-village) is nothing more than that of a regular house with good insulation and lots of 'eco-bling' bolted on. Compensating for the inadequacies of accepted 'standard' construction houses by throwing pieces of technology at them to see if they stick is not a responsible approach.
Good low/zero carbon designs integrate material considerations, solar orientation and environmental factors right from the start to produce designs that naturally perform better with less energy.
Barratt & other volume house builders have already chalked up scores of miserable anonymous boxes around the outskirts of Bristol - please tell me we're not seriously thinking of holding them up as exemplar house-builders because they bought a few turbines and heat-pumps, etc.
Renewable energy is good, but it's only a small part of the picture.
Ben Harries, Bristol,
"All new homes built from 2016 must be carbon-neutral, according to new rules issued in March." It is the running costs of the building which need to be carbon neutral not the construction. I agree with the writer regarding their style and look. Planners are going to have to get ahead of the curve for once as most builders claim to be able to deliver CN homes but in reality few can. In Scotland Das Securities are seeking to build their DAS home (dwellings achieving self-sufficiency.) These buildings have been under development since 1986 and are light years ahead of anything else currently proposed. However, the pricing should be viewed as the cost of prepaying for an element of the buildings' energy needs up front rather than by way of quarterly bills to the local electricity and gas supplier who will become redundant for this type of building. Das Securities define the DAS home as one not requiring connection to external services for energy.
DiJit, Glasgow, Scotland
Surely the challenge is to build a zero Carbon house which is also desirable and aspirational- unlike those built currently for the purpose of marketing and promotion of the manufactures and housebuilders producing them!
Ben, Hatfield, Herts
80-90,000 a building plot is already a heavy discount on the market rate of 150,000. The building companies are allsitting on land and keeping prices up, but do nothing but winge. Its perfectly possible to build an eco house for less than a normal house.
dave kendall, Bristol,
Why do we talk as if the housebuilders make a loss if there are extra costs involved in Green housing as the price of a house has very little to do with building costs and more to do with market conditions. A new house that cost 70,000 five years ago and now costs 200,000 is not because of increased building costs but because of market conditions.The 20,000 extra quoted for carbon neutral just comes of the builders huge profit margin.It is simply just less profit per house so there is no real reason for buyers to pay extra.
Alan Mackay, ABERDEEN, Scotland
Very low or zero carbon homes ar radically different from carbon neutral ones (which allows carbon offsetting) and a zero carbon home will look very different indeed from the carbon neutral home in your illustration.
The only prototype zero carbon home built to date is at the Building Research Establishment's site at Garston. Called the "Lighthouse, it is a highly unusual shape, rather like a slice of cake. The "Lighthouse" has a biomass boiler and photovoltaics, a heat recovery system, roof-mounted wind catcher and light funnel, and a solar thermal array. Zero carbon homes will be radically different in operation and appearance from more traditional new build homes; the acid test is whether the public (and local planning authorities ) will like them and whether purchasers are happy to pay considerably more money for them.
Vivien Aldred, Norwich, UK
Just one question. Define ' carbon-neutral ' As usual with people with ' vision ', their utopian dreams are already results in their minds. When the real results come in, as not being what they said they would be, watch out.! The person who argues against the ' vision ' will be vilified, and the results held up to ridicule. Facts are an ' inconvenient ' truth to the elites.
Desmond Taylor, Houston, USA Texas
Just a more costly house. Why are we being taken in by all this. The house will cost £30.000 more. You will never get that mony back in energy saving. Are these the same people that think wind farms are the answer.
Johnny Norfolk, Mileham Norfolk,