How Much Does a Heat Pump Cost in the UK in 2026?

Air source heat pumps (ASHPs) are the most popular choice in the UK, accounting for over 90% of all heat pump installations. The total installed cost typically falls between £8,000 and £15,000, depending on the size of your home, the brand of heat pump, and the complexity of the installation.

This price includes the outdoor unit, indoor components (controls, buffer vessel if needed), a hot water cylinder (usually 150–250 litres), all pipework and connections, commissioning, and the MCS certificate you need for the BUS grant.

For a typical 3-bedroom semi-detached house with reasonable insulation, expect to pay around £10,000–£12,000 before the grant. After the £7,500 BUS grant, that comes down to £2,500–£4,500 — comparable to, or even cheaper than, a new gas boiler.

At the lower end (£8,000), you'll find smaller systems for well-insulated terraced houses or flats. At the upper end (£15,000+), you're looking at larger detached properties, premium brands, or installations that require significant additional work such as upgraded radiators or a new hot water cylinder.

Ground source heat pumps (GSHPs) are more expensive to install because they require significant groundwork — either horizontal trenches or vertical boreholes. The total installed cost typically ranges from £15,000 to £35,000.

Horizontal loop systems sit at the lower end (£15,000–£22,000). They require trenches about 1.2–2 metres deep, spread across a garden area roughly two to three times the floor area of your home. The groundwork alone costs £3,000–£7,000.

Vertical borehole systems cost more (£20,000–£35,000) because drilling boreholes 60–200 metres deep requires specialist equipment. However, they need far less garden space, making them suitable for smaller plots. Drilling typically costs £5,000–£12,000 depending on depth and ground conditions.

After the £7,500 BUS grant, a ground source system costs £7,500–£27,500 net. While the upfront cost is significantly higher than air source, ground source heat pumps are more efficient (particularly in winter) and have lower running costs. They also last longer — the ground loops can last 50+ years.

The Boiler Upgrade Scheme (BUS) provides £7,500 towards the cost of an air source or ground source heat pump in England and Wales. Your MCS-certified installer applies for the grant on your behalf — it's deducted directly from your quote, so you never pay the full price upfront.

To qualify, you must own your property (or be a landlord), have a valid EPC (Energy Performance Certificate), and use an MCS-certified installer. The property must not be a new build. There's no means testing — the grant is available regardless of your income.

Scotland has its own scheme: the Home Energy Scotland grant and loan programme, offering up to £7,500 in grants plus an optional interest-free loan of up to £7,500. See our full grants guide for details.

The headline installation price covers the heat pump system itself. But depending on your home, you may need to budget for some extras. Being upfront about these is important — too many guides hide these costs.

Radiator upgrades (£1,500–£6,000)

Heat pumps run at lower flow temperatures (35–45°C) compared to gas boilers (60–80°C). If your radiators are undersized, some may need replacing with larger ones. In a well-insulated home, you may not need any changes at all. In a poorly insulated home, budget £3,000–£6,000 for radiator upgrades. See our radiator guide for a full breakdown.

Insulation improvements (£500–£10,000+)

A heat pump works best in a well-insulated home. If your insulation is poor, improving it before (or alongside) a heat pump installation will reduce the size of heat pump you need and lower your running costs. Loft insulation top-up costs £300–£600. Cavity wall insulation runs £1,000–£2,500. Solid wall insulation is the big one at £5,000–£10,000+, but is not always necessary.

Hot water cylinder (£500–£1,500)

If you currently have a combi boiler (no hot water tank), you'll need a hot water cylinder installed. This is usually included in the heat pump quote, but check. If you already have an airing cupboard with a tank, the existing space can usually be reused.

Electrical supply upgrade (£0–£1,500)

Most UK homes have a sufficient electrical supply for a heat pump. However, if your consumer unit (fuse box) is very old, or if you have a particularly large heat pump, you may need an upgrade. Your installer will assess this during the survey.

Underfloor heating (£2,000–£8,000)

Underfloor heating is not required for a heat pump — most installations use existing radiators. However, if you're renovating, underfloor heating pairs perfectly with a heat pump because it runs at low flow temperatures. Cost depends on the area covered and whether you're retrofitting or installing in a new build.

The cost of a heat pump varies significantly depending on your property type. Larger homes need bigger heat pumps, and some properties require more groundwork or upgrades than others. Here's what to expect for each common property type.

Detached house: £10,000–£15,000

Detached homes have the highest heat loss because all four walls are exposed. They typically need a larger heat pump (8–16 kW for air source) and may require some radiator upgrades. After the BUS grant, expect to pay £2,500–£7,500 net. Ground source is particularly attractive for large detached homes with gardens, as the higher efficiency delivers better long-term savings.

Semi-detached house: £8,000–£12,000

Semi-detached homes share one wall, reducing heat loss. A 6–10 kW air source heat pump is typical. After the grant, net cost is usually £500–£4,500. This is the sweet spot where the economics of a heat pump tend to work out best — moderate installation costs combined with meaningful running cost savings.

Terraced house: £8,000–£11,000

Terraced homes are among the most efficient for heat pumps, with shared walls on two sides keeping heat loss low. A 5–8 kW system is often sufficient. Net cost after the grant can be as low as £500–£3,500. Space for the outdoor unit can be the main challenge — you need at least a small garden, side passage, or yard.

Bungalow: £9,000–£13,000

Bungalows can have higher heat loss due to their large roof area relative to floor space. They typically need a 7–12 kW system. The good news is that outdoor space for the unit is rarely an issue. After the grant, expect £1,500–£5,500 net.

Flat: £8,000–£10,000

Flats have relatively low heat demand but can present practical challenges — where to put the outdoor unit and the hot water cylinder, noise considerations for neighbours, and gaining freeholder or management company permission. Not all flats are suitable, but ground-floor flats with outdoor access can work well. After the grant: £500–£2,500 net.

No two heat pump installations are the same. Here are the main variables that influence what you'll pay.

1. Property size and heat loss

A larger home with poorer insulation needs a bigger heat pump. A 5 kW unit for a well-insulated terraced house costs less than a 16 kW system for a draughty detached home. This is the single biggest factor in cost variation.

2. Insulation quality

Better insulation means lower heat loss, a smaller heat pump, and lower installation and running costs. Investing in insulation before a heat pump often pays for itself. A house with good insulation might need a 7 kW heat pump; the same house with poor insulation might need 12 kW.

3. Existing heating system

If you have a combi boiler, you'll need a hot water cylinder (adding £500–£1,500). If you're replacing an old system boiler with a tank, much of the existing pipework can often be reused. Switching from oil or LPG may involve removing the old tank and making good.

4. Brand and model

Heat pump prices vary by manufacturer. Premium brands may cost more upfront but can offer better efficiency, quieter operation, and longer warranties. Your installer will recommend a unit appropriate for your home and budget.

5. Installation complexity

Straightforward installations (existing pipework in good condition, easy access for the outdoor unit, no electrical upgrades) cost less. Complex jobs — listed buildings, difficult access, multiple zones, or significant pipework changes — cost more.

6. Location

Labour costs vary across the UK. Installations in London and the South East tend to cost 10–20% more than in the Midlands or North. However, this is partly offset by stronger competition among installers in urban areas.