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The report, prepared in conjunction with the Centre of Future Studies (CFS), predicts the development of ?futuristic four-up-two-down, three-generation family homes within the next 20 years? as homes will be adapted to meet demographic and environmental changes.

CFS director Dr Frank Shaw said:

?Over the next 20 years the impacts of technology and climate change will bring about a renaissance in how we live at home.

?Our homes will always be our castles - but they will be significantly more energy efficient, cheaper to run, intelligent, adaptable and more environmentally conscious than the houses we live in today.?

The report foresees families adding and removing floors in their homes in order to accommodate ?up to three generations of the same family? in the same house due to land becoming increasingly expensive.

It also sees climate change playing a big part in the design of homes with houses being built on stilts in areas at risk from flooding and solar panels being widely used to generate electricity. Roofs may also be inverted to maximise the use of rainwater as water may become increasingly rare, according to the report.

Other environmentally-friendly features in future homes include the use of biofuels and wind power as a source of electricity and the full recycling and reuse of water by each household.

Director of mortgages at Alliance & Leicester Stephen Leonard said:

?Government schemes have already been developed to promote sustainable building practice for new homes, which will mean less waste and more recycling, so expect this to be the beginning of a new era for home building.?