An air source heat pump typically costs about £7,000 to £14,000 installed before grant in the UK, and the Boiler Upgrade Scheme takes £7,500 off. From 21 July 2026 until 31 March 2027 the grant is £9,000 for eligible off-gas-grid homes replacing oil or LPG heating.
A heat pump works best in a well-insulated home with radiators or underfloor heating sized for low flow temperatures. In England, most air source heat pumps are permitted development, subject to noise and other conditions.
How a heat pump works
A heat pump moves heat from outside into your home using electricity. For every unit of electricity it uses, it delivers several units of heat. This ratio over a year is the seasonal coefficient of performance (SCOP), and well-designed systems often achieve around 3 to 4, though results vary with the design and the home.
It runs at lower water temperatures than a gas boiler, which is why insulation and emitters matter. See heat pump in the glossary.
Air source or ground source?
| Air source (ASHP) | Ground source (GSHP) | |
|---|---|---|
| Typical installed cost | About £7,000 to £14,000 | Typically £18,000 or more |
| Space needed | An outdoor unit and a cylinder indoors | Land for ground loops or a borehole |
| Efficiency | Good | Usually somewhat higher and steadier |
| Best for | Most homes | Larger plots and new builds |
| Boiler Upgrade Scheme | £7,500 | £7,500 |
Costs are indicative ranges from installer and energy-supplier price guides, which vary. Use the Air Source Heat Pump Calculator and Ground Source Heat Pump Calculator for initial sizing.
Is your home suitable?
- Insulation and airtightness: the better the fabric, the smaller and cheaper the heat pump and the lower the running cost. See the insulation calculator.
- Emitters: existing radiators may need upsizing, or you can add underfloor heating. Your heat loss calculation shows which rooms need attention.
- Hot water cylinder: heat pumps need a cylinder, so you need space for one.
- Outdoor space: the unit needs clear airflow and a location that works for noise, with your neighbours in mind.
- Electrical supply: your installer will check capacity and whether upgrades are needed.
Heat loss and sizing
A proper room-by-room heat loss calculation is the foundation of a good installation, and MCS installers are required to carry one out. An oversized unit cycles on and off and wastes money, and an undersized one struggles on the coldest days. Be cautious of anyone who sizes a heat pump by floor area or by matching the old boiler.
Running costs
Electricity averages about 26.3p per kWh under the Ofgem price cap for October to December 2026, so a heat pump delivering three units of heat per unit of electricity produces heat at roughly a third of that per kWh. Gas is much cheaper per unit (about 8p per kWh), so a heat pump's running cost is often similar to a modern gas boiler's and lower than oil, LPG or direct electric heating.
Published estimates for a typical three-bedroom home range from roughly £800 to £1,000 a year for heating, but this depends heavily on the home, usage and tariff. Heat pump tariffs and time-of-use tariffs can reduce the cost further. Use your own figures with your installer's design estimate.
Grants and funding
- Boiler Upgrade Scheme: £7,500 towards an air source or ground source heat pump in England and Wales, rising to £9,000 for eligible off-gas-grid homes replacing oil or LPG from 21 July 2026 until 31 March 2027. Your MCS installer applies and takes it off your invoice.
- Warm Homes: Local Grant: council-run help for lower-income homes in England, which can include heat pumps.
- VAT: 0% VAT currently applies to installing energy-saving materials, including heat pumps, until 31 March 2027, after which the 5% reduced rate is due to apply unless the relief is extended. Check gov.uk.
Grant values and end dates have changed several times, so confirm current terms on gov.uk before you rely on them.
Planning permission
In England, the permitted development rules for air source heat pumps were changed with effect from 29 May 2025. The previous requirement to site a unit at least one metre from the boundary was removed, the maximum unit size was raised, and the noise condition now refers to MCS 020(a). Other conditions still apply, including for listed buildings, and Scotland, Wales and Northern Ireland have different rules. Check with the Planning Portal, your council and our permitted development checker. For listed buildings, see heating and insulation in listed buildings.
The installation process
- Improve the fabric where it is worthwhile, and check your EPC.
- Get quotes from MCS-certified installers, each with a heat loss calculation.
- Agree the design: unit, cylinder, emitters, controls and noise assessment.
- Voucher application: your installer applies for the Boiler Upgrade Scheme before work starts.
- Installation and commissioning: typically a few days, followed by MCS registration and your certificate.
- Handover: make sure you are shown how to use the controls and get the paperwork.
Common mistakes
- Sizing by guesswork instead of a heat loss calculation.
- Keeping flow temperatures high because radiators are too small.
- Skipping insulation and draught-proofing first.
- Poor unit location that causes noise complaints.
- Not setting up the controls and weather compensation correctly.
See our heat pump installer page for who does the work.
Sources and further reading
- GOV.UK: Apply for the Boiler Upgrade Scheme Who can apply and what the grant covers
- Ofgem: Boiler Upgrade Scheme installer guidance (V5.1) Grant values, eligibility, biomass rules and the voucher end date
- The Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026 The April 2026 changes, including the removal of the EPC requirement
- Planning Portal: heat pumps Planning guidance for heat pumps
- Ofgem: energy price cap and standing charges Electricity unit rates and standing charges
- HMRC: VAT rates for energy-saving materials (VENSAV2083) Zero rate dates for batteries and heat pumps
External links open in a new tab. Last checked October 2026.
Frequently asked questions
How much does an air source heat pump cost in the UK?
Typically about 7,000 to 14,000 pounds installed before grant, depending on the home and specification. The Boiler Upgrade Scheme takes 7,500 pounds off, or 9,000 pounds for eligible off-gas-grid homes until 31 March 2027.
Do I need planning permission for a heat pump?
In England most air source heat pumps are permitted development, subject to conditions including noise to MCS 020(a), and listed buildings have extra rules. Scotland, Wales and Northern Ireland differ. Check before installing.
Are heat pumps cheaper to run than gas boilers?
Often similar to a modern gas boiler and cheaper than oil, LPG or direct electric heating, because a heat pump delivers several units of heat per unit of electricity. The result depends on your home and tariff.
Do I need to insulate my home before getting a heat pump?
Not always, but better insulation lowers the size and running cost of the system. Your installer will carry out a heat loss calculation to show what is needed.
Can I get a heat pump grant if I am a landlord or building new?
The Boiler Upgrade Scheme is aimed at existing homes replacing fossil fuel heating and does not apply to new-build homes. Check current eligibility on gov.uk.