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This is the finding of research carried out by cost consultant Cyril Sweett on behalf of English Partnerships and the Housing Corporation.

The report looked at four approaches to achieving Level 3 鈥� which reduces carbon emissions by 25% and saves 21 litres of water per person per day - applied across six different house type. It found that costs will range from being between 0.4% to 6.2% more depending the house type, with the Code being most expensive to achieve in traditionally built detached and terraced houses. Apartments and houses using modern methods of construction would be cheapest.

Further analysis of results showed that costs are likely to be lowest where it is possible to use wind energy or on site-wide combined heat and power systems.

Adam MacTavish, a director of management consultancy at Cyril Sweett said: 鈥淲hilst the cost of achieving these standards using traditional methods are high there are good reasons to expect actual costs to reduce as both industry and its supply chain begin to focus on environmental performance. These standards amplify the benefit of taking innovative approaches to both design and delivery鈥�.

Registration of developments under The Code for Sustainable Homes starts this month. The government is likely to propose that from April next year all new housing will be rated under the Code as a stepping stone towards all new homes being zero carbon by 2016.