With rising energy costs and pressure to meet carbon reduction targets, many UK homeowners, landlords, and property developers are exploring low-carbon heating alternatives.
One increasingly popular option is the heat pump, a system known for its energy efficiency and environmental benefits. But can you install a heat pump in a flat, especially in space-constrained, multi-storey buildings common across the UK?
This guide will discuss options available, challenges, and key considerations. We’ll also outline the types of heat pumps best suited for flats, the regulatory requirements, available grants, and the impact on EPC ratings helping you make an informed, cost-effective decision.
Can You Install a Heat Pump in a Flat in the UK?
Yes,you can install a heat pump in a flat, but there are several planning, technical, and ownership considerations:
- External unit space: For air source heat pumps (ASHPs), you’ll need a balcony, roof space, or wall with suitable airflow.
- Noise regulations: ASHPs must comply with Permitted Development Rights and noise limits.
- Ownership structure: Leaseholders typically require freeholder permission.
- Building fabric: Flats must be well-insulated to benefit from low-temperature heating systems.
If you’re in Tyne and Wear, Newcastle, or the North East and need expert advice on installing a heat pump in a flat, Future Heat can guide you through the process and provide a free heat pump installation quote tailored to your property.
Heat Pump Installation in Flats: Leasehold vs. Freehold
- Leasehold flats: Installation usually needs written consent and may be limited by lease agreements.
- Freehold flats or maisonettes: Greater autonomy for installing heat pumps, especially on the ground floor.
Pro Tip: Always check your Energy Performance Certificate (EPC) before planning a retrofit, it affects both eligibility for grants and installation design.
Which Heat Pump Is Best for Flats?
For flats in the UK, air source heat pumps are typically the most practical option. They’re compact, easier to install, and don’t require extensive groundworks like ground source systems.
Modern ASHPs also operate quietly and can be mounted on balconies, walls, or rooftops, ideal for urban and space-restricted environments.
Why Air Source Heat Pumps Are the Most Suitable Choice
Air source heat pumps are typically:
- Compact and wall-mounted
- Compatible with underfloor heating or low-temperature radiators
- Efficient for smaller internal spaces
- Easier to maintain and install than GSHPs
Pairing air source heat pumps with underfloor heating is getting more and more popular among flat owners, as it is a quick and efficient way to warm your flat up.
Monobloc vs. Split Systems
- Monobloc systems: Contain all components in one outdoor unit. Simpler for retrofits in flats.
- Split systems: Require an indoor unit but offer better efficiency in colder climates.
Alternatives for Flats Without Outdoor Space
- Shared communal systems: Ideal for housing blocks, one central ASHP serving multiple flats.
- Ground loop connections: Rare but feasible in new-build flats with shared infrastructure.
What Are the Benefits of Installing a Heat Pump in a Flat?
Installing a heat pump in a flat offers numerous benefits, from lower energy bills and reduced carbon emissions to improved EPC ratings and property value. For landlords and commercial property owners, it’s a future-proof investment that aligns with energy efficiency regulations and the growing demand for sustainable housing.
For Homeowners
- Lower energy bills: Heat pumps can reduce electricity costs by up to 30% (source: Energy Saving Trust).
- EPC improvement: Helps meet the UK’s Minimum Energy Efficiency Standards (MEES).
- Long lifespan: Typically lasts 15–20 years with minimal maintenance.
For Landlords
- Improved EPC ratings: Boosts rental appeal and avoids penalties under MEES regulations.
- Tenant satisfaction: Offers low running costs and comfort year-round.
- Access to funding: Landlords can benefit from government schemes such as the Boiler Upgrade Scheme (BUS).
Are There Government Grants for Heat Pumps in Flats?
Yes, UK homeowners and landlords can access several government-backed schemes to reduce the upfront cost of heat pump installation.
Eligibility may vary depending on your current heating system, EPC rating, and whether the flat is leasehold or freehold. These grants help make sustainable heating more affordable and accessible.
Available Heat Pump Funding Options in the UK
- Boiler Upgrade Scheme (BUS) – £7,500 grant for ASHP installation. Flats are eligible under certain conditions.
- ECO4 Scheme – Energy efficiency upgrades for low-income households, including flats.
- Home Upgrade Grant (HUG) – For off-grid homes, available in some local authority regions.
- Smart Export Guarantee (SEG) – Pays homeowners for exporting renewable electricity, when used with solar + heat pump combos.
Eligibility Considerations
- Must have a valid EPC with no outstanding recommendations.
- Must replace an existing fossil fuel heating system (e.g., gas boiler).
- Installation must be done by an MCS-certified installer.
Do You Need Planning Permission to Install a Heat Pump in a Flat?
Installing a heat pump in a flat often requires planning permission, especially for external units in leasehold buildings or conservation areas.
There are also noise and proximity limits set out in planning law and guidance by bodies like Ofgem. Ensuring compliance with these rules is crucial for a successful installation.
In most cases:
- Permitted Development Rights apply to ASHPs if noise and size regulations are met.
- Flats do not automatically qualify, especially in conservation areas or listed buildings.
- You may need to apply for full planning permission, particularly for external units.
Noise and Location Restrictions
- External units must be placed at least one metre from the boundary.
- Must not exceed 42 dB(A) at a distance of 1m (Ofgem guidelines).
- Installation in shared spaces may require acoustic screening.
For more detail, see our blog post on how noisy air source heat pumps are.
Heat Pump Installation in Flats: Costs and ROI
The cost of installing an air source heat pump in a flat depends on the system type, flat layout, and whether it’s part of a larger communal system.
However, grants like the Boiler Upgrade Scheme (BUS) can significantly offset costs. The long-term return on investment (ROI) comes in the form of lower bills, higher EPC ratings, and reduced maintenance.
- ASHP installation in a flat: £6,000–£10,000 (before grants).
- Communal heat pump systems: £20,000+ (shared infrastructure).
ROI and Payback Period
- Average payback period: 7–10 years.
- Faster payback if switching from direct electric or oil-based heating.
- ROI improves with Smart Meters, solar integration, and time-of-use tariffs.
Frequently Asked Questions (FAQs)
If the installation affects shared areas (like walls, roofs, or balconies), you may need consent from neighbours or your building’s management company, especially in leasehold or co-owned properties.
Yes, ground floor flats typically offer easier access for the outdoor unit and piping, making installation simpler and more cost-effective compared to upper-level flats.
It’s possible, but you’ll need listed building consent and full planning permission, as external changes (like mounting an outdoor unit) are tightly controlled. Specialist advice is recommended.
Most flat installations take 2 to 4 days, depending on access, unit placement, and whether it’s a single or communal system. Planning and permissions may extend the timeline.
Installing a heat pump in a leasehold flat can be challenging but not impossible. As a leaseholder, you don’t own the building outright, you’ll need permission from the freeholder or managing agent before making any major changes to the property, including installing a heat pump. You may also need planning permission, especially if the heat pump is to be installed on an external wall or communal area. Noise levels, space availability, and listed building status can also affect whether installation is feasible. It’s important to consult with a qualified installer and check the terms of your lease before proceeding.
Our Verdict
Choosing the right heating solution for a flat in the UK involves careful planning, like making sure a heat pump is suitable for your property, but the long-term benefits of switching to a low-carbon system are substantial. Heat pumps offer an efficient, eco-friendly alternative to traditional heating methods, especially as regulations tighten and energy bills rise.
Whether you’re a homeowner looking to cut costs, a landlord aiming for EPC compliance, or a commercial property manager seeking sustainable upgrades, the right installation can enhance property value, tenant satisfaction, and overall energy performance.
Myles Robinson is a seasoned expert in the boiler and home improvement industry, with over a decade of experience. He is deeply committed to environmental sustainability, actively promoting energy-efficient heating solutions to help households reduce their carbon footprint. By combining industry expertise with a dedication to environmental responsibility, Myles continues to lead efforts in transforming home heating practices towards a more sustainable future.
