Housebuilders warn that green costs are a hinderance

Housebuilders are warning that the cost of building energy-efficient homes will delay the industry's recovery from the current downturn.

Industry leaders say the extra cost of building sustainably will restrict firms from bouncing back quickly once the economic climate improves.

House Builders Association spokesman Roger Humber said, "Sustainability is not remotely relevant any more with the credit crunch. The cost is going to make recovery so much more difficult than the government realises."

Housing minister Caroline Flint confirmed last week the industry was stalling when she accidentally exposed Cabinet papers to photographers. The documents warned new build was falling and house prices would plummet by 5% to 10% "at best" this year.

Federation of Master Builders spokesman Brian Berry said: "No one has been wanting to be seen to be talking the market down. But maybe this will make companies face up to the reality that they might have to reassess projects."