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The Impact of Heat Pumps on Property Value

Impact of Heat Pumps On House Prices

Renewable energy is proving to be a powerful weapon in the fight to save our planet. From solar panels to heat pumps, people have access to solutions that mean lower energy bills and the opportunity to reduce their carbon footprints. 

Heat pumps are gradually gaining popularity in the UK as more households recognise the benefits of installing them. While installing a pump is an investment, government grants and heating plans mean you can cut the immediate costs. 

The long-term savings in lower energy bills and increased property value also make heat pumps attractive. 

Discover how heat pump installation can boost property value and enhance selling power here. 

What are heat pumps, and how do they work?

There are three types of heat pumps available, but ground and air-source pumps are the most popular. Both collect heat from a natural source and convert it into energy, which an indoor unit then produces heat. 

The pumps can also work in reverse, cooling a property in the summer, making them an excellent investment for year-round comfort.

Air-source heat pumps

Air-source heat pumps collect heat from the air and convert it into energy. They’re the most popular solution because they’re easy to install and suitable for a range of properties. However, they’re not as consistent as water or ground-source heat pumps.

Ground-source heat pumps

Ground-source heat pumps utilise the earth’s consistent temperatures and operate using an underground system. While these pumps perform better, you’ll need a large garden to install them. Smaller gardens can use vertical boreholes, but installation can exceed £40,000. 

Will heat pump installation increase my property’s value?

When it comes to determining how much a heat pump will increase your property’s value, there’s no set amount, as different factors come into play. 

However, people are more eco-conscious today than ever before and are more likely to look favourably at properties that take sustainability seriously. 

Research published by Savills shows that 71% of prospective buyers regard a home’s Energy Performance Certificate (EPC) as a central factor in their decision-making process. 

The study also highlighted that 59% of people would pay more for a property with 75% renewable energy. 

According to the WWF, heat pump installation can increase a property’s value between 1.7% and 3%, making it a smart investment for the future. 

How do heat pumps increase property value?

As the above statistics show, installing a heat pump can boost your property’s value and make it more attractive to buyers. In competitive markets, homes that produce renewable energy can stand out and receive more offers. 

Let’s explore how heat pumps increase property value. 


Did you know that a gas boiler creates more annual carbon emissions than seven transatlantic flights? Research published by Nesta also reveals that just under 90% of property owners underestimate their carbon emissions. 

Heat pumps are renewable heating sources that use natural heat from the air and ground. Installing them will reduce the property’s emissions and ensure a greener future. 

Ground-source heat pumps are the most efficient option, but installing an air-source pump will also lower your emissions. 

High demand 

While solar panels remain the standard option for renewable energy production, heat pumps’ versatility means they’ll continue to be in demand. The UK uptake has been slower than Scandinavian countries, but heat pump popularity is still increasing. 

In 2023, UK heat pump installations increased by 20%, and specialists are confident that more households will adopt them (Carbon Brief). 

The high demand for heat pumps means estate agents can advertise them as unique selling points, which will increase views and secure more offers. 


Another unique benefit of heat pumps is their ability to heat and cool your home. The UK’s climate is changing, with much hotter summers. 

Unfortunately, most homes are unequipped to deal with these heat waves, but that’s where air and ground source pumps come in. 

They’ll generate warm air in the winter and cool properties in the summer, ensuring year-round comfort and reducing your reliance on fans or air conditioners. 

How to install a heat pump 

If you’d like to benefit from heat pumps, installation can offer immediate and long-term financial advantages. The first step is to decide which pump is right for your property. 

Air-source heat pumps are the cheapest solution, but ground-source heat pumps offer more consistency. However, they cost more and require more space. 

Use grants to save money 

Heat pumps are investments, but that doesn’t mean you can’t save money on them. The government aims to install 600,000 pumps by 2028, and the Boiler Upgrade Scheme makes them more accessible. 

Households can save up to £7,500 on a heat pump if they’re transitioning from fossil fuels.

Find a reliable service  

Some reports suggest that heat pumps don’t work correctly, but this is often due to improper installation. 

A regulated service must carry out all UK heat pump installations. The MCS is the main regulatory body, but some companies use other certifications. As long as you check the company thoroughly and look at reviews, you’ll have peace of mind. 

Maintain your heat pump 

Compared to boilers, heat pumps are relatively easy to maintain. However, they do have to work hard in winter, and regular services are vital to achieving optimal performance. Using a specialist maintenance service means you don’t have to worry about a thing. 

The bottom line 

Heat pumps are playing significant roles in reducing carbon emissions, and there’s every reason to believe they’ll continue to grow in popularity. 

Whether you choose to install an air—or ground-source heat pump, its ability to reduce your energy bills and increase property value means you’ll secure a positive ROI over time. Hometree specialises in renewable heating and cooling solutions, allowing households to save money on installation and enjoy absolute convenience. If you’re interested in heat pumps, please contact us today to discuss your options.

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