It found that energy efficiency measures could boost house prices by up to 38 per cent in some parts of the country, potentially increasing the value of a home by £25,000.
DECC’s report is the first large-scale empirical study of the effect of energy labelling on residential property prices in England.
Commenting on the report, John Alker, Director of Policy and Communications at the UK Green Building Council, said: “This research provides evidence that the retrofit industry has been craving for a long time. Energy efficiency not only reduces bills and makes for a more comfortable home, but - like a new kitchen or bathroom - it can actually add value to the property as well.
“This puts the debate about payback of energy efficiency measures into context because it shows that the householder is likely to recoup their initial investment anyway. It also provides a timely boost for the Green Deal, which will bring down the upfront cost of a retrofit package for those who choose to use it.”
To read the full report - An investigation of the effect of EPC ratings on house prices - click here.