A survey by Which? revealed 46 per cent of people would want the Green Deal loan paid off in full before they bought a property, while 21 per cent would reconsider buying a home if it had a Green Deal loan attached to it.
However, the survey did show the government’s advertising campaign is working, as awareness of the Green Deal has increased from 35 per cent at its launch in January, to 52 per cent.
Richard Lloyd, executive director at Which?, said: “With rising energy prices still one of the top consumer worries, measures that help people make their homes more energy efficient are vital to help save money on bills.
“The Green Deal might work for some people but, as with any financial product, whether it’s a good deal for you will depend upon your personal and financial circumstances. Overall, people should tread carefully, check the small print and shop around.”
The Department of Energy and Climate Change (Decc) said the home improvements obtained by getting a Green deal could be a “bonus” when it comes to selling a property.
A spokesman added: “Anyone buying a property will see clearly on the Energy Performance Certificate both the estimated savings and the Green Deal charge that has to be paid.
“In all cases the typical expected savings will be equal to or more than the charge in the first year of the Green Deal Plan.
“Everything will be transparent and we think that many buyers will want houses which are attractive, warm and easier to heat – particularly when the costs are covered by the expected savings.”