UK cost guide · September 2026
How much does an air source heat pump cost in 2026?
An air source heat pump for a 3-bed home costs about £12,000 to £15,000 installed, before the grant. The Boiler Upgrade Scheme pays £7,500 in England and Wales, bringing the typical cost to £4,500 to £7,500. Installation is zero-rated for VAT until 31 March 2027.
Work out your air source heat pump cost
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Air source heat pump prices in 2026
Ranges are for a typical home outside London, including VAT, before fees and contingency. Use the calculator for your size, region and finish.
| Type | Typical cost | After £7,500 grant |
|---|---|---|
| 2-bed home | £10,000 to £12,000 | £2,500 to £4,500 |
| 3-bed home | £12,000 to £15,000 | £4,500 to £7,500 |
| 4-bed home or larger | £15,000 to £18,000 | £7,500 to £10,500 |
Air source heat pump costs by region
Labour costs vary across the UK far more than materials. London runs about 35% above the UK average and Northern Ireland about 18% below.
| Region | Typical cost |
|---|---|
| UK average (outside London) | £12,000 to £15,000 |
| London | £13,300 to £16,600 |
| South East | £12,500 to £15,700 |
| East of England | £12,300 to £15,300 |
| South West | £12,100 to £15,200 |
| West Midlands | £11,900 to £14,900 |
| East Midlands | £11,800 to £14,800 |
| Scotland | £11,800 to £14,800 |
| North West | £11,700 to £14,700 |
| Yorkshire and the Humber | £11,700 to £14,600 |
| Wales | £11,600 to £14,600 |
| North East | £11,600 to £14,500 |
| Northern Ireland | £11,400 to £14,200 |
Want it for your area? See local prices and council building control fees for 92 council areas.
What's included in these prices
Included
- Heat pump unit and hot water cylinder
- Installation and commissioning
- Removal of the old boiler
- Some radiator upgrades (varies by installer)
Not included
- Major radiator and pipework replacement
- Insulation work
- Electrical supply upgrades if needed
What drives the cost
- Heat loss. Well-insulated homes need smaller, cheaper heat pumps.
- Radiators. Heat pumps run cooler, so some radiators may need to be bigger.
- Hot water. Most homes need a new cylinder.
Planning, regulations and VAT
The Boiler Upgrade Scheme gives £7,500 towards an air source heat pump in England and Wales, and more for homes replacing oil or LPG until March 2027. Your installer applies for the grant. Heat pumps are zero-rated for VAT until 31 March 2027 (VAT Notice 708/6).
Checklist: what to ask builders to confirm
Print this or save it as a PDF. Mark each line included, separate or not confirmed as quotes come in. An empty amount means unknown, not free.
| Item | What to confirm | Included? Amount? |
|---|---|---|
| Heat loss survey | Room-by-room calculation. | |
| Grant | Installer applies for the Boiler Upgrade Scheme. | |
| Radiators and cylinder | What changes and what is included. | |
| Running costs | Estimated annual cost against your current system. |
Questions people ask
How much is the heat pump grant?
£7,500 for an air source heat pump in England and Wales under the Boiler Upgrade Scheme.
Is there VAT on heat pumps?
No, installation is zero-rated until 31 March 2027, then 5%.
Sources and method
Our ranges combine published 2026 UK cost guides, industry data and our own survey of council fees. We check them every quarter. They are planning figures, not quotes: always get at least three detailed written quotes. Read how Estiquote estimates work, or download the full cost data.