London homes eligible for £2,500 heat pump grant
Government grants are available for air-to-air heat pumps that can both heat and cool properties.
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London residents are set to benefit from government grants offering £2,500 towards the installation of air-to-air heat pumps, a technology that can both heat and cool homes. The Department of Energy Security and Net Zero (DESNZ) announced the discount in November 2025, with typical installation costs for these systems estimated at £4,500. This initiative aims to provide a greener alternative to traditional heating and cooling methods, particularly relevant for London properties vulnerable to overheating during heatwaves.
How air-to-air heat pumps work
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Air-to-air heat pumps operate by transferring heat from one location to another. In colder conditions, they extract heat from the outside air and move it indoors to warm the space. Conversely, in warmer weather, the system can be reversed to extract heat from inside and expel it outdoors, thereby cooling the interior. This technology bypasses traditional radiators and can be switched between heating and cooling modes using a remote control. A single outdoor unit can power multiple indoor units, with Charlie Richmond, a heat pump expert, suggesting that keeping internal doors open can allow one unit to serve several rooms.
Grant eligibility and requirements
To be eligible for the £2,500 grant, households must meet specific criteria. The new heat pump must supply 100% of the property's heating load, meaning existing boilers cannot be retained for backup. Charlotte Lee, chief executive of the Heat Pump Association, confirmed that an MCS certified installer must carry out the installation. Furthermore, a maximum of five indoor units can be installed, with at least one unit required for every habitable room, excluding kitchens and bathrooms. The grant scheme is managed under the government's Boiler Upgrade Scheme, but as of nine months after the initial announcement, the grant is not yet claimable.
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Certification delays
A significant hurdle to accessing the grant is the ongoing certification process for installers. The scheme requires installers to be MCS certified, a standard that is still being established for air-to-air heat pumps. A DESNZ spokesperson stated that the government is working with MCS to establish this certification pathway, with "significant progress being made." However, the MCS has indicated that "several steps remain in the process," and the timeline for full implementation remains unclear. Experts suggest that installers certified for air-to-water heat pumps likely possess the necessary skills for air-to-air installations.
Hot water and environmental impact
Most air-to-air heat pumps do not heat domestic hot water, although some models are designed to do so. For households replacing a gas boiler, a small electric hot water tank is recommended as a simple and efficient solution, though operating costs may be slightly higher than with an air-to-water heat pump. The heating function of an air-to-air heat pump significantly reduces household carbon emissions compared to fossil fuel heating. While the cooling function operates similarly to standard air conditioning units, the heating aspect offers a substantial environmental benefit.
Questions this report answers
+How much money can I get towards installing an air-to-air heat pump?
You can receive a discount of £2,500 towards the installation of an air-to-air heat pump. The typical cost for installing such a system in a flat or small house is around £4,500, meaning the grant covers a significant portion of the expense.
+What are the conditions for receiving the heat pump grant?
To qualify for the grant, the new heat pump must provide 100% of your home's heating load, and the installer must be MCS certified. Additionally, you can have a maximum of five indoor units, with one unit required for every habitable room except kitchens and bathrooms.
+When can I actually claim the £2,500 grant for a heat pump?
The grant was announced by the Department of Energy Security and Net Zero in November 2025, but it is not yet fully claimable. This is because the MCS certification pathway for air-to-air heat pump installers is still being finalised, with several steps remaining in the process.
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