A study of over 300,000 property sales by the Department of Energy and Climate Change (DECC) has concluded that installing measures such as loft insulation or efficient boilers to raise a home's energy rating from band G to E could increase its value by up to 38%.
Statistics show that improving the energy efficiency of a house from band G to E could boost its price by over £25,000 for the average house in the North East and £23,000 in the North West, while London homes could experience a £41,000 uplift.
Energy and Climate Change Minister Greg Barker said the figures showed the "huge potential rewards" of the Government's Green Deal scheme, which aims to improve the UK's draughty housing stock by providing financing packages to cover the upfront cost of refurbishments.
However, the scheme has reportedly suffered relatively low take-up rates to date amidst criticism of the high interest rates attached to the financing packages.
Labour has warned that a household taking out a 25 year Green Deal package worth £10,000 at the standard 6.96 per cent rate of interest would end up repaying close to £21,000 over the course of the loan, potentially undermining some of the resulting increase in house prices.
Industry figures have also revealed a drastic slow down in the roll out of insulation improvements, as previous support schemes have been phased out and the Green Deal has so far failed to replace the demand that has been lost.
However, the Government has maintained that interest in the Green Deal is building and has consistently argued that the combination of competitive interest rates and cash incentives makes the scheme an attractive proposition for many households.
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