In return housebuilders would be spared onerous changes to the Building Regulations and continue to construct new schemes to current guidelines.

Linden believes its alternative sustainability initiative will cut carbon and energy costs while creating new jobs and homes people want to live in.

Ian Baker, Linden Homes’ Group Managing Director, said: “Last year’s improvement in building regulations as a result of the Code for Sustainable Homes has significantly reduced CO2 emissions and water use from all new homes.

“However, we believe the government and new-build housing industry need to explore alternative ways to deliver the further carbon reductions and improvements in sustainability aspired to.”

Linden is against additional regulation and believes new houses are energy efficient enough.

The firm wants to see new homes continue to be constructed in accordance with Building Regulations 2010.

Developers would then provide a ‘new homes sustainability bonus’, which would be deposited into a central fund, to enable the retrofit of the UK’s existing housing stock.

The plan could also lead to a significant reduction in costs to the new build sector – making land more viable and enabling more new homes to be built.

Baker said: “At a time when budgets have been tightened and fuel bills are rising, we believe something needs to be done to help Local Authorities, Housing Associations and Registered Social Landlords fund energy improvements to existing homes.

“This scheme would not only make the necessary funds available to undertake these energy improvements, but could also make new build schemes much more viable in the future.”

Linden Homes will be taking its initiative to political opinion formers over the summer for consideration. A full announcement into how it would be trialled and rolled out, if given the go-ahead, is expected later in the year.