According to the Office of Budget Responsibility, the Government’s fiscal watchdog, household utility bills this April will cost 120pc more than a year ago.

“Valuers are reflecting on whether the valuation should take the EPC rating into account. I think it will happen,” said Ms Woolf.

A senior banking source said buyers would want to pay less for homes needing eco works. “When any property comes up for sale, upgrades will always be reflected in the price. Offers will be made in terms of where the property’s rating is. If someone has been living in a band E property and cannot afford to upgrade it, when they sell it that will be cast back in the price,” the source said. 

If there were outstanding works totalling £10,000 to get a property up to its target EPC, for example, this would give a buyer negotiating power in kind.

The Government has discussed giving mortgage lenders a target of having an average band C rating across their portfolios by 2030. The banking source warned this could trap homeowners in properties that become unsalable. “What you don’t want is to set up a cohort of property prisoners, because lenders don’t want to lend or can’t lend on inefficient properties,” he said.

The Government now prefers an approach that will simply reward improvements over time, he added.

A Rics spokesman said it was working with the Government to support homeowners and buyers as the property market transitions to net zero by 2050.

Reform of the EPC system will be key. EPCs are being used as a tool in the Government’s green homes strategy, but they do not measure energy efficiency, only costs.

The Rics spokesman said: “While helpful, existing energy performance ratings do not necessarily translate into the carbon output or overall sustainability of a building – instead they show only how cost effective each is to operate for a tenant or owner. 

“We are consulting with our professionals, wider industry and the Government on the consideration of energy efficiency and its impact on the market. This includes, as an example, how changes to the existing EPC regime could provide a more complete picture on the sustainability of buildings which would better inform the buying and selling process.”

The Red Book review will conclude towards the end of 2022.