Heat Pump Costs in the UK (2026): What You’ll Really Pay and Save

A heat pump quote can feel like a moving target, because the headline price changes with your home, your existing heating system, and how much work is needed to get low temperature heating performing properly. For most UK owner occupied homes looking at an air source heat pump in 2026, a realistic installed price usually sits in the £8,000 to £15,000+ bracket before any grant is applied.

That range is wide for a reason. A small, well insulated flat with existing large radiators can land near the lower end. A larger, older property that needs bigger radiators, pipe upgrades, a hot water cylinder, and electrical work can push past £15,000.

A quick way to sanity check any quote is to ask one question early: "What exactly am I getting for this price?" The details matter far more than the headline figure.

A practical rule from projects I have worked on: the cheapest quote often becomes the most expensive once the real scope is uncovered, because retrofit heating is rarely plug and play.

Typical installed cost ranges you will see in 2026

These are broad, real world ranges that track what many UK homeowners are seeing quoted, once property size, emitters, and the hot water setup are considered.

• Smaller homes and flats (often 1 to 2 bedrooms): roughly £8,000 to £11,000 before grants
• Typical family homes (often 2 to 4 bedrooms): roughly £10,000 to £14,000 before grants
• Larger homes, older stone properties, or more complex retrofits: £14,000 to £20,000+ before grants

The system type also affects the price. Air source heat pumps are usually the most common choice for UK homes because they are simpler to install than ground source systems, and they suit a wide range of property types.

What is included in a heat pump installation quote, and what often is not

Most homeowners compare quotes by staring at the final number, then feeling unsure about how two proposals can differ by several thousand pounds. A better approach is to break a quote into the parts that actually drive cost.

Usually included

Most solid quotes will include:

• Heat pump unit and accessories such as anti vibration mounts, valves, filters, and controls
• Hot water cylinder if you need one, plus tempering valve and safety components
• Design and heat loss calculations, which should size the system correctly and set sensible flow temperatures
• Labour for installation including plumbing changes, commissioning, and handover
• Basic electrical work to supply the heat pump and controls
• System flush and inhibitor, because clean water protects the heat exchanger and helps maintain efficiency
• Warranty registration and paperwork where applicable

Hidden extras that can change the final bill

These are common items that turn a quote into a higher invoice if they are not nailed down upfront.

• Radiator upgrades or additional radiators. Heat pumps like lower flow temperatures, so your radiators often need to be larger than a boiler setup.
• Pipework modifications. Older microbore pipework and undersized distribution can limit flow, which hurts performance.
• Hot water cylinder relocation. Moving a cylinder can involve carpentry, new drains, and extra pipe runs.
• Consumer unit upgrades or extra electrical protection, particularly in older homes.
• Outdoor groundwork for condensate drainage or a stable base, especially where freezing conditions are a concern.
• Asbestos surveys or specialist removal in some older properties.
• Scaffolding or access costs for awkward exterior runs.

If a quote feels unusually low, ask for a written list of assumptions. A low price based on optimistic assumptions is not a bargain, it is a risk.

The 2026 Boiler Upgrade Scheme: how the £7,500 grant really works

In England and Wales, the Boiler Upgrade Scheme, often shortened to BUS, continues to be a key lever for bringing upfront costs down. The grant for an eligible air source heat pump is up to £7,500, and the same maximum support is available for eligible ground source heat pumps.

The practical impact is straightforward. A £13,500 installed air source heat pump can become £6,000 out of pocket once the grant is applied, if your home and chosen installer meet the scheme rules.

What homeowners need to know about BUS in plain terms

• The scheme provides an upfront grant, so you do not usually pay full cost and claim later.
• Your chosen installer typically applies on your behalf, which is why installer choice matters.
• Eligibility hinges on factors such as the type of property, existing heating, and required documentation.

A key planning point is timing. Installers often have busy diaries in winter and early spring, and comprehensive heat pump grant strategies require advance planning since funding is finite, so leaving the decision until the coldest months can box you into fewer choices.

Running costs in 2026: heat pump versus gas boiler

Upfront cost grabs attention, yet running cost is what you live with every month. Your annual energy bill is shaped by three big levers:

1. How much heat your home needs, driven by insulation, airtightness, and your indoor temperature targets
2. Your heat pump efficiency, usually discussed using seasonal performance metrics, where typical seasonal values for modern air source systems often sit in the region of 3 to 4 when designed and installed well
3. The gap between electricity and gas prices, which remains a real factor under the Ofgem price cap structure

As of the January to March 2026 price cap, typical unit rates are around 5.93 pence per kWh for gas and 24.86 pence per kWh for electricity for many households paying by direct debit, with standing charges on top. Those numbers alone explain why some households see heat pumps costing slightly more to run than a brand new gas boiler when electricity is expensive relative to gas.

A simple way to think about it

A heat pump turns 1 kWh of electricity into roughly 3 to 4 kWh of heat across a season when the system is designed for low temperature heating. That effective heat cost can be competitive, particularly if your home is well insulated, your radiators are sized properly, and you run steady temperatures rather than aggressive on off cycling.

Gas boilers, on the other hand, buy cheaper fuel per kWh, yet they still lose energy up the flue and typically operate at an efficiency below 100 percent over real world conditions.

So will you save money or not?

The honest answer is that some homes save quickly, some break even, and some pay a little more for heat in exchange for other benefits such as comfort, resilience, and lower carbon heating. The good news is that you can influence the outcome.

If you want to tilt the maths in your favour, focus on the levers you can control.

• Lower the required flow temperature by improving insulation and fitting adequately sized emitters
• Use weather compensation so the system tracks outdoor temperature smoothly
• Consider a heat pump friendly electricity tariff where appropriate
• Avoid oversizing, because oversized systems cycle and run less efficiently

Over time, small efficiency gains compound. A slightly lower flow temperature across a season can translate into a noticeable drop in electricity use.

How to cut the installation cost without sacrificing efficiency

Cost cutting can be smart, as long as it is done in the right places. The aim is to reduce wasted scope, not remove the parts that keep the system efficient.

Spend money where it protects performance

• Heat loss calculation and design. A heat pump lives or dies by design. Good design sets the right flow temperatures and emitter sizes.
• Emitter upgrades where needed. Upgrading a few key radiators can be cheaper than running high temperatures forever.
• Controls setup and commissioning. Commissioning is where the promised efficiency becomes real.

Save money where it does not harm the result

• Do insulation and draught proofing first, especially loft insulation and easy gaps around doors and hatches.
• Stage radiator upgrades. Some homes can start with core rooms and add emitters later, if the design allows.
• Keep pipe runs short and sensible by choosing a practical outdoor unit location, while respecting noise guidance and neighbour boundaries.
• Ask for a clear scope so you can compare quotes line by line, rather than guessing.

A detail that often gets overlooked is heat distribution. If you are planning underfloor heating as part of a renovation, working with a reputable supplier such as ThermRite for properly specified materials can help keep water temperatures lower, which supports heat pump efficiency.

Choosing a trusted supplier and avoiding overspending in London, Manchester, and Glasgow

Where you live shapes access, labour costs, and installer availability. London can carry higher labour rates and parking logistics, Manchester often offers strong competition among regional firms, and Glasgow brings its own stock of older properties where insulation and emitter upgrades can matter more.

A checklist for choosing the right installer

• MCS certification and a willingness to explain the design, not just sell a box on the wall
• A written heat loss assessment and emitter schedule, room by room
• Clear confirmation of grant handling if you are using BUS in England or Wales
• Evidence of commissioning process, including flow temperature targets and control settings
• A warranty that states what is covered and for how long, including labour versus parts

Questions worth asking on the call:

• "What flow temperature are you designing for on the coldest day?"
• "Which radiators are assumed to be upgraded, and which are staying?"
• "Is the hot water cylinder included, and what size is it?"
• "What electrical work is included in this price?"

If the answers come back vague, keep shopping.

A realistic example of payback thinking

A heat pump decision usually sits at the intersection of comfort, cost, and future proofing. The grant can make the upfront step far easier, while running costs hinge on good design and how your home holds heat.

One approach I have seen work well in real projects is to treat the heat pump as part of a package:

• First, fix the obvious heat losses
• Second, right size the emitters
• Third, choose the heat pump

That sequence keeps the system smaller, cheaper, and easier to run.

Frequently Asked Questions

How much does an air source heat pump cost in the UK in 2026?

Many households see installed quotes in the £8,000 to £15,000+ range before grants, with smaller homes tending toward the lower end and larger, more complex retrofits rising above that.

What does the £7,500 Boiler Upgrade Scheme grant cover?

The BUS provides up to £7,500 off an eligible heat pump installation in England and Wales, and it is typically applied upfront by the installer as part of the purchase and installation process.

Will a heat pump be cheaper to run than a gas boiler in 2026?

It depends on your home's heat demand, your system design, and electricity versus gas prices. Well designed low temperature systems can be very competitive, yet some homes may see similar or slightly higher running costs until insulation and emitter upgrades are addressed.

What should I watch for in a heat pump quote?

Look for a proper heat loss calculation, clear assumptions about radiator and pipework upgrades, confirmation of electrical scope, and a commissioning plan that targets sensible low flow temperatures.

How can I avoid overpaying for a heat pump in London, Manchester, or Glasgow?

Compare quotes line by line, prioritise MCS certified installers with transparent designs, and reduce the required system size by improving insulation first, since smaller systems often mean lower upfront and running costs.

Your next step

Heat pumps can be a great fit in 2026, yet the best outcomes go to homeowners who treat the quote as a design document, not a single price. Ask for detail, compare scopes, and push for low temperature operation so your running costs stay under control.

If you are collecting quotes now, shortlist two or three MCS certified installers, request a room by room heat loss assessment, and ask each one to explain the flow temperature they are designing for. That one conversation can save you thousands, and it can set you up for years of quieter, steadier heat. Understanding current heat pump market trends can also help inform your decision timing and installer selection process.