Developers are in for a bit of a rough ride if they are to meet government standards for sustainable homes.

The Code for Sustainable Homes (CSH), which aims for all new homes to be zero-carbon by 2016, is currently not mandatory, but the Government is reviewing the option to make it so from April 2008.

This must surely be good news for the environment: stopping the ice caps from melting is, after all, the very point of the zero carbon agenda.

But new research from Savills wonders whether developers will be able to deliver the CO2 targets, and, more to the point, whether Joe Bloggs buying a new home will be willing to foot the bill.

Which leads on to the next question: will buyers be prepared to pay more for a completely kitted out carbon no-go home?

Savills found that homeowners are certainly eco-savvy, but not necessarily keen on the eco-medicine being prescribed by the Government. In a nut-shell: they're all for it if it saves them money, but less enthusiastic if they have to pay more..

As the report notes: "The importance that occupiers attach to various green features seems to be largely related to saving money rather than saving the planet."

Energy saving features were rated as important by 74 per cent, low running costs by 77 per cent and good thermal insulation by 84 per cent.

But when it came down to whether buyers would pay more for these green enhancements the figures melted away like ... well, like icebergs on the fringes of Antarctica.

Energy saving features were the biggest draw, as around 25 per cent of buyers conceded they would part with more cash for these.

Clearly, developers are facing something of a dilemma if they are to invest in carbon-neutral housebuilding that will carry overheads that cannot be passed onto the buyer.

While lower levels of sustainable living have been estimated by English Partnerships to average between £3,000 and £6,000 per dwelling, the holy grail of carbon-free homes, level 6, could pile on a potential £26,000 to £36,000 to building costs.

The Government is waiving stamp duty on zero-carbon homes up to £500,000 starting from October to help offset building costs. But things will be far tighter at the top end where the stamp duty exemption will be capped at £15,000.

So there's a lot of horse-trading to be done between the Government, the developers and homeowners on who will shoulder the costs. The alternative is that the specs for truly zero-carbon homes are downgraded – watch this space.

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