There is a strong economic case for building "green" homes but not for significantly increasing new home supply according to David Smith, economics editor of the Sunday Times.<br> <br> Speaking at a seminar held by the All Party Parliamentary Group on sustainable housing and the NHBC Foundation, Smith commented that with energy prices rising more rapidly than other commodities, the economic context for building sustainable homes was "strong," provided incentives could be put in place.<br> <br> But increasing the number of homes in the country would be more challenging, with lenders predicting no substantial increase in mortgage lending for the foreseeable future.<br> <br> "There is no prospect of returning to pre-downturn lending levels. Should we expect to see more homes built when the mortgage market is so tight?" he said.<br> <br> "I'm optimistic that people can be persuaded by the virtues of green, but pessimistic about the sudden thawing of finance to open the market."<br> <br> Hilary Benn MP, the shadow communities secretary, said that good examples of sustainable housing would encourage consumers to consider green homes. But he warned that water use and the environmental impact of the builder should not be overlooked within the energy efficiency drive.<br> <br> …