The guidance, which responds to comments and feedback from industry, provides greater clarity in a number of areas including the future eligibility of different energy sources and the method for calculating anticipated water consumption.

Yvette Cooper said:

"We need to build more affordable homes but we also need to cut carbon emissions at the same time. That is why we are working with industry to meet the zero carbon challenge including through financial incentives.

"The ambition for all new homes to be zero carbon by 2016 is a challenging one. We need to work in close co-operation with house builders and the green technology industry to achieve this."

HM Treasury will shortly lay draft regulations before Parliament setting out definition of a zero carbon home for stamp duty land tax purposes. An exemption on stamp duty land tax for new zero carbon homes was announced by the then Chancellor Gordon Brown last December.