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A landlord's guide to heat pumps

Many landlords want to know the best and most effective way to heat their properties. They may also be looking to transition away from gas central heating and installing a heat pump.
man installing an aroTHERM plus heat pump

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 EXPLAINED What is a heat pump and how does it work?

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.

  • Air source heat pumps: Air source heat pumps extract thermal energy from the outside air and convert this into heating and hot water to heat your property.
  • Ground source heat pumps: Ground source heat pumps extract thermal energy from the ground near your property with either ground arrays or a bore hole and converts this into heating and hot water. They operate in cold temperatures and are incredibly efficient.
  • Water source heat pumps: Water source heat pumps work by extracting heat from a body of water and turning this into energy to heat your property and supply you with hot water.

All You Need to Know About Heat Pumps Before Having One Installed In Your Rental Property.

THINGS TO CONSIDER How much does an air source heat pump cost and what should landlords consider?

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.

Heat pump costs

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.

Efficiency

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.

Heat source and heat pump installation

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.

Planning permission

If your property is within a conservation area or world heritage site, you will need to check with your local authority first to see if you will need planning permission. The criteria for permits also varies between England, Scotland and Wales. In Scotland for example, the air source heat pump’s external unit and housing cannot exceed 3 metres in height, but in England, the unit can’t be larger than 0.6m³.

Landlords who plan to install their first air source heat pump won’t need planning permission. However, adding a second heat pump will require planning permission. Additionally, if your property has a wind turbine, you will need to apply for planning permission and it’s also important to note that the heat pump must pass the 020 sound assessment.

Vaillant’s aroTHERM plus units are all Quiet Mark Certified*, which recognises manufacturers of the quietest products.

*excluding the 10kW model.

insulation

Insulation

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, Including Associated Costs.

FULL SYSTEM SOLUTION What does a Vaillant heat pump system include?

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.

aroTHERM plus heat pump
aroTHERM plus heat pump

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.

sensoCOMFORT heating control
sensoCOMFORT heating control

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.

myVAILLANT connect
myVAILLANT connect

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.

uniSTOR cylinder
uniSTOR cylinder

financial support Can landlords get grants for heat pumps?

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.

MODERNISE YOUR HOME What are the advantages to a heat pump?

Heat pumps have significant advantages from a longer lifespan to lower operating costs, that will benefit landlords.

  • Lifespan

    Regular servicing, a well designed and installed heat pump should last over 15 years.

  • Energy efficiency

    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.

  • Versatile and flexible

    Heat pumps are extremely versatile and flexible, as they can be installed in a variety of properties, including flats, terraced houses and gardens.

  • Environmental benefits

    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.

  • Quiet operation

    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.

Considerations of having a heat pump in rental properties What are the disadvantages of a heat pump?

As well as having significant advantages, there are a few considerations heat pumps do have that landlords should be aware of.

  • High initial cost

    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.

  • Heat pump installation

    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.

  • Space

    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.

SUMMARY

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.

Want to know more about Vaillant heat pumps?