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myAir Source Heat Pump Installation Cost
At a Glance
- The average cost of air source heat pump installation is around £8,000 in the UK.
- Most air source heat pump installations will take approximately 3 days to finish.
- Air source heat pump installation costs in 2026 including material costs and price by house size.
- How long installing an air source heat pump takes and what's normally involved in the process.
- How to find and hire a local certified heating engineer with MyJobQuote.
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£8,000
Table of Contents
- What is the Cost of an Air Source Heat Pump Installation?
- Air Source Heat Pump Running Costs
- Alternative Types of Heating Systems
- Additional Air Source Heat Pump Costs to Consider
- Factors That Affect Air Source Heat Pump Installation Costs
- Benefits of Installing an Air Source Heat Pump
- UK Boiler Upgrade Schemes and Grants
- Building Regulations & Planning Permission for Heat Pump Installations
- Checklist: Installing an Air Source Heat Pump in the UK
- FAQs
What is the Cost of an Air Source Heat Pump Installation?
Including materials and labour fees, an air source heat pump installation costs in the UK between £7,000 and £11,000. However, some larger or more complex installations can potentially cost up to £15,000.
The price of an air source heat pump may also be higher in areas such as London and the South East, as labour fees often increase to reflect the regional cost of living.
Air source heat pumps are highly efficient systems that absorb heat from the outside air and use it to produce heat for radiators or underfloor heating. They can extract air and external heat, even at low temperatures, and although they require electricity to operate, the heat generated is constantly being renewed naturally.
Alongside ground source heat pumps, air source heat pumps are promoted in the UK as a low-carbon heating system that provides an energy efficient alternative to installing more traditional gas and electric central heating.
Are air heat pumps noisy? We're unsure whether the unit that goes outside will annoy neighbours or disturb our peace.
"Not at all, you will a sort of fan 'hum' but that’s all. Would only really recommend with underfloor manifold or you’ll need to over size radiator to allow for heat. Best to check the manufacturer's instructions of the heat pump you're looking at getting to find out the exact DB level."
Air Source Heat Pump Installation Prices
The following table provides details on the cost of installing an air source heat pump, including materials and labour fees, based on the size of your home.
| Property Size | System Type | Duration | Estimated Cost |
|---|---|---|---|
| 2-bedroom semi-detached | Air-to-water | 2–3 days | £7,000 |
| 3-bedroom semi-detached | Air-to-water | 3 days | £8,100 |
| 4-bedroom detached | Air-to-water | 3–4 days | £9,500 |
| 5-bedroom detached | Air-to-water | 3–4 days | £11,000 |
| 1–2-bedroom flat or small terrace | Air-to-air | 1–2 days | £2,400–£5,000 |
| 3–4-bedroom home | Air-to-air | 2–3 days | £4,000–£8,000 |
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Did you know...
According to a 2022 report published by Scottish Power, a heat pump installation can add around 1.7% to 3.0% of additional value to your home.
Supply-Only Cost of Heat Pump Installation
The table below shows the average cost of the heat pump unit alone, excluding labour. This is useful if you want to understand what proportion of a quote relates to materials.
| Property Size | Material Cost Only |
|---|---|
| 2-bedroom semi-detached | £3,500 |
| 3-bedroom semi-detached | £3,900 |
| 4-bedroom detached | £4,200 |
| 5-bedroom detached | £4,500 |
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There seems to be a lot of debate about whether heat pumps work in older homes. What does an old house need for one to work effectively?
"Nothing to stop you, other than it can be expensive to run.
Any company that came out to estimate for you would need to carry out quite an extensive survey of the property regarding its heat loss. If they don't carry out this survey, they are not worth dealing with.
The problem with our older housing stock is they were built during an era of cheap energy, open chimneys, and cavity walls with no insulation. They just haemorrhage the heat you have produced, I'm afraid.
In summary, it is all about the insulation levels as others here have mentioned."
Any company that came out to estimate for you would need to carry out quite an extensive survey of the property regarding its heat loss. If they don't carry out this survey, they are not worth dealing with.
The problem with our older housing stock is they were built during an era of cheap energy, open chimneys, and cavity walls with no insulation. They just haemorrhage the heat you have produced, I'm afraid.
In summary, it is all about the insulation levels as others here have mentioned."
Air Source Heat Pump Running Costs
Understanding the ongoing running costs and servicing costs will give you a clearer picture of what your total expenditure will be.
Heat pumps use electricity rather than gas, so your annual energy bills will depend largely on your energy tariff, the size of your property, and the insulation in your home. A well-maintained heat pump system that produces 2 to 4 times as much heat as it consumes can make a big difference in heating bills over time, particularly when replacing traditional heating systems.
Annual heat pump service costs are usually the same regardless of property size, typically costing between £100 and £200 per year when carried out by a certified engineer.
Let's take a look at some typical annual running costs based on the size of your home:
| House Size | Annual Estimated Cost |
|---|---|
| 2 bedroom semi-detached | £700-£1,000 |
| 3 bedroom semi-detached | £800–£1,200 |
| 4 bedroom detached | £1,000–£1,400 |
| 5 bedroom detached | £1,200–£1,500 |
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How Much Could You Save by Switching?
Potential savings depend heavily on what you are replacing. Switching from an oil or LPG system typically delivers the biggest reduction in running costs, while switching from a newer gas boiler may result in similar or marginally higher electricity bills — though with significantly lower carbon emissions.
- Replacing an oil boiler — annual savings of around £200 to £500 are achievable in a well-insulated home, as oil prices are volatile and typically higher per unit than electricity when efficiency is factored in.
- Replacing an LPG boiler — LPG is one of the most expensive heating fuels per unit, so savings can be significant: potentially £400 to £800 per year in a suitable property.
- Replacing a gas boiler — electricity costs more per kWh than gas, so running costs are often broadly comparable rather than lower. The heat pump's efficiency largely determines whether bills go up or down.
- Replacing direct electric heating — heat pumps produce 3 to 4 times more heat per unit of electricity than direct electric heaters, so savings can be substantial: up to £1,000 or more per year in larger homes.
How Long Does It Take to Pay for Itself?
Payback period depends on installation cost, the system being replaced, and annual savings. After applying the £7,500 Boiler Upgrade Scheme grant, the net cost for many homeowners drops to between £0 and £5,500 — which can bring the payback period down to as little as 3 to 7 years where meaningful savings are being made.
Without the grant, and where switching from gas, the payback period is typically 10 to 15 years. Annual service costs of £100 to £200 should also be factored into the overall calculation.
What Increases Running Costs?
Several factors can push running costs higher than the estimates above:
- Higher desired temperatures — heat pumps deliver heat at lower temperatures over longer periods. If you want your home warmer than around 20–21°C, the system has to work harder, increasing electricity consumption.
- Poor insulation — a poorly insulated home loses heat quickly, so the heat pump runs for longer to maintain temperature. Upgrading cavity wall insulation or roof insulation before installation can make a significant difference.
- Energy tariff — the cost per kWh of electricity varies between suppliers and tariff types. Some energy providers offer dedicated heat pump tariffs with cheaper off-peak rates, which can reduce annual costs if the system is programmed to run overnight.
- Undersized or mismatched radiators — if your radiators are too small for the lower flow temperatures a heat pump operates at, the system runs less efficiently. Upgrading to larger radiators improves performance and reduces running time.
Running Costs: Air-to-Air vs Air-to-Water
The type of system you install affects heating performance, efficiency, suitability for your property, and overall long-term costs.
Air-to-water heat pumps connect to your wet central heating system and provide both space heating and domestic hot water. They are the most common option in UK homes and are generally best suited to properties already using radiators or underfloor heating. Because they operate at lower flow temperatures than a gas boiler, some homes may require larger radiators or insulation upgrades to achieve the best efficiency.
Typical supply and installation costs range from £7,000–£15,000, with annual running costs usually between £700–£1,500 depending on property size and insulation levels.
Pros
- ✔ Provides heating and hot water
- ✔ Suitable for most homes replacing a gas boiler or oil boiler
- ✔ Works efficiently with underfloor heating
- ✔ Eligible for the Boiler Upgrade Scheme grant
Cons
- ✖ Higher installation costs
- ✖ May require larger radiators or a hot water cylinder
- ✖ Installation can take longer than air-to-air systems
Air-to-air heat pumps distribute warm air through fans rather than radiators and can also provide cooling during warmer months. However, they do not provide hot water, meaning a separate hot water system is still required.
These systems are generally better suited to smaller, modern, or well-insulated homes where lower heating demand makes fan-based heating practical. Installation is usually faster and less disruptive because no wet heating pipework is required.
Typical supply and installation costs range from £2,400–£8,000, with annual heating costs often between £500–£1,000, although separate hot water costs should also be considered.
Pros
- ✔ Lower upfront installation cost
- ✔ Can provide cooling during summer
- ✔ Faster and simpler to install
- ✔ No radiator or pipework modifications needed
Cons
- ✖ Does not provide domestic hot water
- ✖ Less suitable for larger properties
- ✖ Relies on fan-based warm air circulation
| System Type | Provides Hot Water? | Typical Annual Running Cost | Best For |
|---|---|---|---|
| Air-to-water | Yes | £700–£1,500 | Most UK homes replacing a gas or oil boiler |
| Air-to-air | No | £500–£1,000 (heating only) | Smaller, modern, or well-insulated properties |
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Alternative Types of Heating Systems
When comparing your options, it is worth looking beyond installation cost alone. For many homeowners, the combination of heat pump grants and long-term energy savings can make switching a worthwhile investment, particularly when replacing oil or LPG systems.
Unlike gas boilers, air source heat pumps qualify for heat pump grants that can help cover the higher upfront cost. A gas boiler installation may cost less upfront and have slightly lower running costs, but the £7,500 Boiler Upgrade Scheme grant effectively offsets that difference for many homeowners.
For oil and LPG households, switching to a heat pump can reduce both running costs and energy bills, while also providing more stability against fluctuating energy prices.
Below we take a look at the alternative systems, and compare their average installation costs (material and labour fees combined). However, this doesn't include running costs or maintenance costs:
| Type of system | Average supply & installation cost | Any UK government grants available? |
|---|---|---|
| Air-to-air ASHP | £2,400–£8,000+ | Yes |
| Air-to-water ASHP | £7,000–£15,000+ | Yes |
| Gas combi boiler | £1,200–£4,000 | No |
| Electric boiler | £1,700–£4,600 | No |
| Biomass boiler | £7,000–£20,000+ | Yes |
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Additional Air Source Heat Pump Costs to Consider
The installation quote you receive should cover the heat pump unit, labour, commissioning, and basic controls. However, depending on your property and existing heating setup, there are several additional costs that may apply.
Hot Water Cylinder
If your home currently has a combi boiler, it has no separate hot water storage tank. Switching to an air-to-water heat pump requires a hot water cylinder to be installed, as heat pumps heat water more gradually than a combi boiler and need somewhere to store it. A new hot water cylinder typically costs £800 to £1,500 supplied and fitted, depending on size and complexity.
Radiator Upgrades
Heat pumps operate at lower flow temperatures than gas boilers, which means your existing radiators may not give off enough heat to warm a room effectively. An installer will assess whether your current radiators are compatible during the heat loss survey. If upgrades are needed, budget around £150 to £300 per radiator, or around £200 for a full removal and replacement. Not all radiators will need replacing — it depends on their size relative to the room.
Underfloor Heating
Air-to-water heat pumps are particularly well suited to underfloor heating, as the large surface area works efficiently at the lower flow temperatures a heat pump produces. If you are considering underfloor heating at the same time, costs typically range from £40 to £190 per m² depending on the system type.
Central Heating System
If your home does not already have a wet central heating system, you will need one installed before an air-to-water heat pump can be connected. The cost of installing central heating averages around £4,250, depending on property size and the extent of the work required.
Insulation Improvements
Heat pumps work most efficiently in well-insulated homes. If your property has poor insulation, running costs will be higher and you may need a larger, more expensive unit. Addressing insulation before installation can reduce both the size of system needed and ongoing bills. Relevant costs include:
- Cavity wall insulation — £1,000 to £5,000 depending on property size.
- Roof insulation — £400 to £600 for a standard pitched roof.
- Floor insulation — around £800 on average.
Electrical Work
An electrician is typically required to install a dedicated circuit for the heat pump, connect any controls, and update the consumer unit if needed. This work is usually quoted separately from the heat pump installation itself. Electrician costs range from £45 to £80 per hour, or £250 to £500 per day for larger jobs.
Plumbing Work
While the heat pump installer will carry out the main pipework connections, some properties require additional plumbing — particularly where the existing pipework is in poor condition or needs rerouting. Plumber costs are typically £45 to £80 per hour for this type of work.
Annual Servicing
Heat pumps should be serviced once a year by a certified engineer to maintain efficiency and protect any warranty. Annual heat pump service costs typically range from £100 to £200, which is broadly comparable to a gas boiler service.
Can you use a heat pump with underfloor heating?
"Yes, a ground or air source heat pump can be used for underfloor systems, as well as hot water and radiators if required."
Factors That Affect Air Source Heat Pump Installation Costs
Several factors influence how much you will pay for an air source heat pump installation. Understanding these can help you budget more accurately and compare quotes on a like-for-like basis.
Property Size and Heat Demand
Larger homes require a more powerful heat pump to maintain consistent heating throughout. Installers assess heat demand in kilowatts (kW) based on your property's square footage, insulation levels, and how many rooms need heating. A well-insulated 3-bedroom home might need a 5kW system, while a poorly insulated 5-bedroom detached could require 12kW or more — with a proportionally higher cost.
System Type
Air-to-water systems are more expensive to install than air-to-air systems due to the pipework, hot water cylinder, and radiator connections involved. If your home already has a suitable wet central heating system and a hot water cylinder, installation will generally be more straightforward and less costly.
Existing Heating Setup
Homes currently heated by a combi boiler typically require the most additional work, as a hot water cylinder will need to be installed. Homes with an existing system boiler and cylinder are often easier to convert. Homes on oil or LPG may need pipework modifications, but the long-term running cost savings are often greater.
Insulation Quality
A well-insulated home can use a smaller, less expensive heat pump and will benefit from lower running costs. A poorly insulated property may require a larger system and could be less cost-effective to run. Many installers will recommend addressing insulation before or alongside the heat pump installation.
Brand and Efficiency Rating
Heat pump efficiency is measured by the Coefficient of Performance (COP) — the ratio of heat output to electricity input. A higher COP means greater efficiency and lower running costs. Premium brands with a higher COP tend to cost more upfront but can deliver better long-term value. A good COP for a domestic heat pump is generally between 3.0 and 5.0.
Location
Air source heat pump installers cost more to hire in London and the South East than in the rest of the UK. The position of the outdoor unit can also affect installation time — a straightforward outdoor installation on flat ground is quicker than a more complex positioning on a sloped or restricted site.
Radiator and Pipework Compatibility
If your existing radiators or pipework are not compatible with the lower flow temperatures a heat pump uses, upgrades will be needed. Older microbore pipework is often replaced with larger-diameter pipes to improve flow, adding to the overall cost. A proper heat loss survey, carried out by the installer before work begins, should identify all of this upfront.
Are air source heat pumps easier to install than ground source heat pumps?
"Yes, air source heat pump installation is much easier than ground source. Ground source pump installations cost about 2 – 5 times more than air source too."
Benefits of Installing an Air Source Heat Pump
Beyond the installation cost, there are several long-term reasons homeowners choose to switch to an air source heat pump.
- Lower carbon emissions — Heat pumps produce significantly fewer carbon emissions than gas, oil, or LPG heating systems. As the UK electricity grid becomes greener, the carbon footprint of running a heat pump continues to fall.
- High energy efficiency — A well-designed system generates 2 to 4 units of heat for every unit of electricity it consumes — making it far more efficient than direct electric heating and broadly comparable to gas in an insulated home.
- Eligible for government grants — Air source heat pumps currently qualify for the £7,500 Boiler Upgrade Scheme grant in England and Wales, which significantly reduces the upfront cost.
- Increased home value — A heat pump installation can add around 1.7% to 3.0% to the value of your property.
- No flue, gas supply, or oil tank required — This removes the maintenance and safety considerations associated with combustion-based heating, including the risk of carbon monoxide or gas leaks.
- Heating and cooling in one system —. Air-to-air heat pumps can also run in reverse to provide cooling during warmer months, without the need for a separate air conditioning unit.
- Long lifespan — A well-maintained heat pump typically lasts 15 to 20 years — longer than the average gas boiler — with relatively low ongoing maintenance requirements.
- Future-proof heating — The UK government has set out plans to phase out new gas boiler installations by 2035. Switching now avoids potential disruption later and takes advantage of current grant funding while it is available.
UK Boiler Upgrade Schemes and Grants
In the UK, there are several government-backed schemes to help with the cost of installing an air source heat pump. These are designed to improve home energy efficiency and reduce your carbon footprint.
You may need to meet certain criteria regarding your property type and system specifications to become eligible. It's always best to check with your local council or a certified installer for further advice before proceeding with the work.
- Boiler Upgrade Scheme (BUS) — Available in England and Wales, this grant provides £7,500 toward the installation of an air source heat pump. Your MCS-certified installer applies for the grant on your behalf, and it is deducted from the total cost at the point of installation. Note that hybrid heat pump systems are not eligible.
- Energy Company Obligation (ECO4) — Helps eligible lower-income households across the UK cover the cost of energy efficiency upgrades, including heat pump installations. The scheme currently runs until 31 December 2026.
- Warm Homes Local Grant — Low-income households in England may be eligible for grants of up to £15,000 to cover energy efficiency upgrades, including heat pump installations.
- Home Energy Scotland Grant and Loan — Scottish homeowners may qualify for grants of £7,500 to £9,000 for new heat pump installations, with interest-free loans available to cover any additional costs. Note that replacement heat pumps are not eligible for the grant, though an interest-free loan of up to £7,500 may be available.
Domestic heat pump installations also currently benefit from 0% VAT until 31 March 2027, rather than the standard 5% rate, helping to reduce upfront costs further.
For a hybrid heating system, is it better to have a ground source heat pump or an air source heat pump? What would you recommend?
"This depends on the size of the heat loss for the property. Air source heat pumps cost less and can be set up on bi valent point (depending on the heat loss), so the heat pump will switch off at a set outside weather temperature and the secondary boiler will then take over the heating."
Building Regulations & Planning Permission for Heat Pump Installations
In most cases, installing an air source heat pump at your property is classed as a permitted development, meaning no planning permission is required. This applies provided the unit meets conditions around size, placement, noise levels, and the number of units installed. Properties in conservation areas, listed buildings, or with additional permitted development restrictions may be subject to different rules — check with your local authority if you are unsure.
Flats and apartments require consent from the freeholder or management company before installation can proceed, as the work can affect the wider building and its residents.
Building regulations do apply to heat pump installations, covering energy efficiency and system performance (Part L), electrical safety (Part P), hot water safety (Part G), and ventilation (to prevent overheating). A reputable, MCS-certified installer will be familiar with all applicable regulations and can self-certify the work on completion.
Checklist: Installing an Air Source Heat Pump in the UK
Consider the following when having your heat pump installed:
- Is your installer MCS-accredited? Only Microgeneration Certification Scheme (MCS)-accredited installers can sign off on installations that comply with the Boiler Upgrade Scheme and other government grants. Always verify accreditation before agreeing to any work.
- Do they hold F-Gas certification? Heat pumps contain refrigerants regulated under UK law. By law, installation, repair, and servicing must be carried out by an F-Gas certified professional. This is not optional — using an uncertified installer is illegal and will void your warranty.
- Will they carry out a heat loss survey? A reputable installer will assess your property's heat loss before recommending a system size. This is essential for ensuring the heat pump is correctly sized for your home. If an installer skips this step, walk away.
- Have you received advice on the right system type? Air-to-water systems connect to your wet central heating and provide hot water, making them a direct boiler replacement. Air-to-air systems heat via fans and do not provide hot water. Make sure the system recommended suits your home and existing setup.
- Is backup heating available? During very cold periods, a heat pump may not fully meet all your heating needs. Discuss with your installer whether a backup system — such as a gas boiler for a hybrid setup, or an electric immersion heater — is recommended for your property.
- Have you compared multiple heat pump installation quotes? Always request at least 3 separate quotes to compare pricing. MyJobQuote can connect you with local certified installers without any obligation.
- Does the quote include an itemised breakdown? Confirm in writing exactly what is included — the heat pump unit, labour, commissioning, controls, any hot water cylinder, and waste removal. This avoids unexpected costs later.
- Do they have positive reviews? Check the installer's MyJobQuote profile and any other review platforms to see genuine feedback from previous customers. Look for consistent mentions of system performance, quality of work, and communication.
- Can they provide examples of similar work? Ask to see a portfolio or details of recent installations on similar properties, particularly if your home is older or has specific requirements such as solid walls or existing underfloor heating.
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FAQs
How Does a Heat Pump Save Me Money?
Heat pumps typically produce 2 to 4 times more heat energy than the electricity required for them to run. As an average, between 65% to 75% of the heat comes from the outside air, with the natural environment providing a renewable source or energy, while the balance is produced from electricity.
What Types of Heat Pumps Are Available?
Most heat pumps use electricity to drive the pump, but there are a small number of heat pumps available which use gas. Both of which absorb energy from the air using a fan to draw through the heat pump outside, although gas pumps aren't very common for the home, they are growing in popularity within commercial and industrial installations.
Can You Install an Air Source Heat Pump Yourself?
No, by law your heat pump must be installed by an F-Gas certified professional. Installing one DIY or using a tradesman who isn't officially certified is not only dangerous if not done correctly, but also illegal. It can also void your warranty, as well as affecting your home insurance and any related claims.
Are Heat Pumps Worth the Investment in a Smaller Property?
Depending on how small your property is, you may only have annual savings of £200 to £400 per year on your energy bills making it a slow return on investment. However, the heat pump's efficiency of having a low carbon heating system also benefits from being more environmentally friendly compared to traditional heating systems.
How Long Do Air Source Heat Pumps Last?
A typical lifespan on average is around 15–20 years when looked after properly. This includes annual servicing by a certified engineer, keeping the outdoor unit clear of any dirt or other debris, and routinely checking the filters, refrigerant levels, and insulation. With proper maintenance they may last even longer.
What Factors Impact the Running Costs of an Air Source Heat Pump?
The cost can depend on how energy efficient your chosen system is once it's being used, along with the heat source, radiator size, your provider and energy tariff. There are also other ways to reduce your energy bills, such as ensuring your property is well-insulated throughout.
Can Air Source Heat Pumps Be Used for an Air Conditioning System?
Yes, it's possible to install a system that can provide cool air as well as heating. Essentially when on a cool setting, they work in reverse by removing internal hot air and distributing it outside. They do normally cost around an extra 5-10% compared to just having a heat pump installed, however, heat pump running costs are usually more efficient than a regular air conditioning unit.
Is an Air Source Heat Pump Suitable for My Home?
Most homes can accommodate an air source heat pump, but well-insulated properties with a good energy performance certificate tend to see the best results. Poorly insulated homes may need energy efficiency improvements such as solid wall insulation or radiator upgrades before installation, and an MCS certified installer will carry out a heat loss survey to assess your home beforehand.
Can I Pair an Air Source Heat Pump with Solar Panels?
Combining solar panels with a heat pump is a really effective way to reduce running costs, as any electricity generated offsets the energy your heat pump uses. Over time, the two systems together can make a real difference to energy bills and reduce your reliance on your energy supplier.
Do I Need Planning Permission to Install a Heat Pump?
In most cases, no. Installing an air source heat pump is classed as permitted development in England and Wales, provided the installation meets conditions around size, placement, and noise. If you live in a listed building, conservation area, or a property with additional development restrictions, different rules may apply — check with your local planning authority before proceeding. Flat and apartment installations also require consent from the freeholder or management company.
Do I Need a Backup Heating System?
It depends on your property and system. Air-to-air heat pumps do not provide hot water, so a separate hot water source is always required. For air-to-water systems, a backup is recommended for very cold periods when the heat pump alone may not fully meet your heating demand. Options include keeping an existing gas boiler for a hybrid setup, or installing an electric storage heater or immersion heater as a backup. Your installer should advise on what is appropriate for your home.
