The Government could cut stamp duty on sales of homes improved to be more energy efficient.
Minister of state for climate change and industry Claire Perry says doing so would encourage people to make their homes more environmentally friendly.
Perry told the BBC Today programme that the Government was considering the move.
She added: “We also need to look at building regulations and new building regulations to see what more needs to be done there.”
“I think it is more likely that a home where insulation has been put in would attract a higher value because the running cost of that home over the lifetime of ownership would be lower so again there is no one magic bullet.”
Perry also says that homeowners need to make their homes greener so the Government meets European Union carbon emissions targets.