The house is based on the brief issued by the ODPM last week, when it announced a competition for developers to put together homes for £60,000 or less.
Speaking at an event called 'Sustainable Communities: Homes for All', deputy prime minister John Prescott challenged developers to build homes for 'key workers and first-time buyers' costing £60,000.
'Creating sustainable communities is about more than buildings, and our ambition is about much more than housing alone,' he said.
'Today we are publishing our five-year 'Sustainable Communities: People, Places and Prosperity'. It sets out our proposals to give communities across the country more say in the decisions affecting their lives,' he added.