Energy Performance Certificate improvements boost house prices by 14 per cent on average, and up to 38 per cent in some areas, according to the first large-scale study on EPCs.

The research, carried out by the Department of Energy and Climate Change, finds that improving the EPC of a home from band G to E or from band D to B could add more than £16,000 to the sale price.

In the North East, the average home could see £23,000 added to its value, while moving from G to A or B could see a boost of up to 38 per cent.

In London, however, the increase was far less marked, with improvement from G to F bringing a 10 per cent increase in value, while improvement from G to A or B brought only a 12 per cent increase.

Since January, EPC ratings have had to be included prominently in all advertising.

The report took into account over 300,000 property sales in England between 1995 and 2011, forming the most comprehensive research in this area to date.

Energy and climate change minister Greg Barker said: “We have long known the benefits of making energy saving improvements to the home, but this study is real evidence of the huge potential rewards.

“Not only can energy efficient improvements help protect you against rising energy prices, but they can also add real value to your property. This Coalition is committed to helping hardworking families with the cost of living. The Green Deal is designed to do exactly that.

“The Green Deal is helping more people make these types of home improvements, reducing high upfront costs and letting people pay for some the cost through the savings on their bills. The Green Deal is a great option for anyone wanting to improve the look, feel and potentially the value of their home.”

Almost half of UK properties are currently band D. The government is targeting the UK’s inefficient housing stock through its flagship Green Deal programme.

The research mirrors similar work carried out in Denmark, where such schemes as the EPC were originally pioneered.

Andrew Warren, chairman of the Association for the Conservation of Energy, said the research was “absolutely critical” to establishing confidence in the A to G EPC rating system.

“Traditionally, estate agents have maintained that house choices are entirely based upon location, location, location.

“Given the enormous difference between the outgoings of running an A-rated home as opposed to a G-rated home, as fuel bills soar we are beginning to see another criterion creep into the equation: Running costs, running costs, running costs.”

UK-GBC director of policy and communicaitons John Alker 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.”