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As more people are looking to modernise their homes with this highly efficient method of heating, it’s important to know exactly how heat pumps work, how they are installed and expected costs.
Read our landlord’s guide to heat pumps and discover the benefits of a heat pump.
Heat pumps are a low carbon heating solution that use environmental energy from either the air, ground or water source to generate heating and hot water.
A heat pump works by transferring heat from one location to another, using a small amount of electrical energy to provide heating and hot water when required. Heat pumps are more energy efficient compared to traditional gas boilers because they do not use fossil fuels to operate, making them a more sustainable option for heating properties.
There are three types of heat pumps, air source, ground source, and water source.
All You Need to Know About Heat Pumps Before Having One Installed In Your Rental Property.
When looking to install a heat pump, landlords need to know the costs involved and what to consider when installing a heat pump to their properties.
The overall cost of a heat pump will depend on several factors, including, the type of heat pump, overall output, and installation cost. According to The Eco Experts, heat pumps can cost anywhere from £7,000 to over £30,000 to buy and install. An air source heat pump usually costs around £10,000 on average.
After installing a heat pump, tenants should notice a reduction in energy bills, as heat pumps use electricity to operate instead of gas, making them a cost-effective solution for many properties in the long term.
Air source heat pumps can be an efficient, low carbon way of replacing gas boilers in most properties. Up to 75% of their total energy comes from an existing heat source with the around 25% coming from energy drawn from the building’s electricity supply. Heat pumps have been found to be up to three times more efficient than boilers, using three times less energy to heat properties.
Currently rental properties must hold a valid Energy Performance Certificate (EPC) with a rating of at least E. However, according to Savills, the government’s Renters’ Rights Bill 2024 will include a change to acceptable EPC ratings to raise this acceptable rating to Band C by 2030. This is to work towards the Government’s commitment to reach net zero by 2050, meaning landlords are expected to make their property more energy efficient.
Before installation, landlords will need to decide which type of heat pump they want and what heat pump is most suitable for their properties, which will depend on the amount of space/land they need to cover.
Air source heat pumps present landlords flexibility for installation location, with options to install at flats and terraced houses. The outdoor units can be installed on the ground, on a structurally stable balcony, or mounted on an exterior wall.
From 29th May 2025, in England, you no longer require planning permission from your local authority for most* air source heat pump installs.
This allows you to:
If you live within a Conservation Area or World Heritage site, you will need to check with your local authority first*.
For homeowners that live in Scotland, Wales or Northern Ireland, planning rules still apply meaning it is important to check with your local authority ahead of installation. In Scotland for example, the air source heat pump’s external unit and housing cannot exceed 3m in height.
Landlords must consider the insulation levels of the property. If landlords are renting out a modern flat, these buildings are already well insulated so it is unlikely that the property will need a lot of adjustments. However, if landlords are renting out properties such as a cottage, they will need to make adjustments for it to be suitable.
Let's break down some of the typical heat pump installation considerations
A full Vaillant heat pump system includes the latest heat pump technology with efficient storage and smart controls.
A low carbon heating and hot water solution like Vaillant's aroTHERM plus air source heat pump, available in 3.5, 5, 7, 10 and 12kW models.
Smart controls such as the sensoCOMFORT features an outdoor sensor, allowing the heating to automatically adjust to the weather conditions to work as efficiently as possible.
An internet gateway, such as the myVAILLANT connect, allows you to connect with your heating appliance and will provide your tenants full system visibility wherever they are by using the myVAILLANT app.
High recovery cylinders are designed to work with heat pumps to provide highly efficiency heating and hot water systems. Available in a range of capacities, to suit all types of properties and tenants domestic hot water needs. And come with a 25 year warranty.
Landlords can benefit from a grant from the UK Government towards replacing their boiler with a renewable alternative. The government’s Boiler Upgrade Scheme (BUS) (available in England and Wales) offers a grant of up to £7,500 for heat pumps specifically.
This is applied for through your MCS accredited installer (Microgeneration Certification Scheme) and will be deducted from your overall bill from your installer, which can help reduce the cost.
Landlords may also be eligible for other grants for energy efficiency upgrades, such as insulation. For landlords in Scotland, the Home Energy Scotland (HES) scheme offers grants and loans, with up to £7,500 available for installing heat pumps with potential uplifts in rural areas.
Heat pumps have significant advantages from a longer lifespan to lower operating costs, that will benefit landlords.
Regular servicing, a well designed and installed heat pump should last over 15 years.
Heat pumps are highly efficient as they transfer heat rather than generate it. For every unit of electricity used, they can provide multiple units of heating energy.
Heat pumps are extremely versatile and flexible, as they can be installed in a variety of properties, including flats, terraced houses and gardens.
Heat pumps reduce carbon emissions by using renewable energy sources such as air, ground, or water. They are more environmentally friendly compared to fossil fuel-based heating systems.
Heat pumps are designed to operate quietly, making them less disruptive compared to some traditional heating systems. For example, an air source heat pump is a similar sound to a dishwasher or a microwave, classed as low in sound and not disruptive and ground source heat pumps are quieter than air source heat pumps, emitting a low level of noise, similar to the sound of a modern fridge.
As well as having significant advantages, there are a few considerations heat pumps do have that landlords should be aware of.
Like any new appliance, the upfront cost of installing a heat pump can be higher than other heating systems, however, over time, heat pumps can be the most cost effective choice.
The installation of ground source heat pumps can be complex and invasive, requiring significant space to install. We would recommend having your heat pump installed in the spring/summer when your tenants are less reliant on your system, as your installer may have to turn your heating and hot water off for a period of time.
Read our handy guide on the heat pump installation process.
Ground source heat pumps require significant space for the ground loop system, which might not be feasible for all properties. However, air source heat pumps are more flexible in terms of where they can be installed. Your Vaillant installer will be able to advise you on what sort of heat pump is most suitable for your home.
As new legislation is taking effect to help cut carbon emissions across the UK, landlords should start to consider installing a heat pump into their properties as a low carbon, more efficient alternative. Even though heat pumps come with some considerations, there are significant advantages once heat pumps are installed, including environmental benefits, energy efficiency, longer lifespan with the potential for lower energy bills, with more advantages that landlords can benefit from.
