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A sustainable and efficient means of heating and cooling a property, heat pumps are an attractive feature in any home - but did you know that investing in a heat pump could also bump up the value of your property?   

In addition to the obvious appeal of lowering your heating bill and making your home more energy efficient, your newly installed heat pump could also add extra features such as internal heating, which in turn, could help increase the overall value of your home.   

In this article, we’ve outlined everything you need to know about the benefits of installing a heat pump, including how much the value of your property could increase thereafter.  

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Will a heat pump increase the value of your home? 

One of the most common questions surrounding heat pumps is ‘how much value will a heat pump add to my property?’ And while there is no clear-cut answer to this, research has shown that an energy-efficient upgrade of this kind could well make your home more attractive to prospective buyers, as well as increasing its physical market value. 

One study carried out by the World Wildlife Fund (WWF-UK) revealed that the installation of an air source heat pump could increase the value of your home by around 1.7% - 3%.  

This is equivalent to £4,947 (1.7%) or as much as £8,731 (3.0%) based on the average house price of £291,044. 

 Energy efficient heating and cooling 

The continual rise in energy prices is prompting homeowners to explore their options when it comes to heating their homes. We all want to keep our energy costs to a minimum and the installation of a heat pump could help reduce those costs considerably.   

The WWF research estimated that you could cut your heating costs by approximately 37%, should you invest in a heat pump.  

There are a variety of heat pumps available to choose from, so it’s good to know that the type of heat pump you opt for won’t impact the value it adds to your home. However, be sure to note that ground source heat pumps cost more to buy and install.  

How do heat pumps work?

A heat pump works by moving heat instead of generating it, saving energy and reducing your environmental impact. Heat pumps act like mini refrigerators, transferring thermal energy from outside your home to inside, providing warmth in the winter and cool air in the summer. As every home is different, there are a variety of heat pumps available for your property, including: 

  • Transparent icon with white lines representing EPC
    Transparent icon with white lines representing EPC

    Extracts warmth from the air outside, heating your home via special units in each room.

  • Transparent icon with white lines representing EPC
    Transparent icon with white lines representing EPC

    Works like air-to-air, but heats water for radiators or underfloor heating.

  • Transparent icon with white lines representing EPC
    Transparent icon with white lines representing EPC

    Combines a heat pump with a traditional boiler for ultimate flexibility and efficiency.

  • Transparent icon with white lines representing EPC
    Transparent icon with white lines representing EPC
    Ground source

    Taps into the Earth's constant warmth for highly efficient heating, cooling, and hot water.

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Does air source heat pump add value to your house?

Below we have outlined the main reasons why an air source heat pump could increase the value of your property: 

  • Improve EPC rating 

  • Improve overall energy efficiency, saving you money in the long term 

  • By opting for an air source heat pump that has a cooling function as well as heating, the market value of your home could go up by as much as 2.5%, according to The Express. 

How a ground source heat pump could add value to your home 

Here are the top reasons a ground source heat pump could add value to your home 

  • Improve EPC rating 

  • Improve energy efficiency saving you money 

  • Similarly to air source heat pumps, there are some ground source heat pumps available that feature a cooling function, which could increase your home’s value by up to 2.5% 

  • Installing a ground source heat pump is an effective means of future-proofing your home against heating regulations designed to reach net-zero greenhouse gas emissions by 2050 

How EPC ratings affect the value of your home 

Poor EPC ratings, particularly in today’s market, can be incredibly off-putting to prospective buyers - after all, we want reassurance that our outgoings won’t be through the roof once we move into a property. Presentation of good EPC ratings can boost the value of our property by as much as 20%. 

Those intent on improving their EPC ratings have a number of options available to them. When investing in a heat pump, most installers will proceed to recommend insulation improvements, the addition of larger radiators and in some circumstances, even solar panels and wind turbines.   

The likes of wall insulation, floor insulation and loft insulation, together with the installation of renewable energy generators could improve your EPC by as many as 15 points.  

If you’re keen to ensure your EPC rating improves and you can still benefit from the energy savings that a heat pump offers, it’s important that your home is: 

  • Fully insulated 

  • Fitted with low energy lighting 

  • Complete with double-glazed windows 

  • Complete with an Insulated hot water cylinder 

  • Equipped with heating controls 

  • Fitted with solar photovoltaic panels fitted (or another effective renewable electricity generator) 

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Will a heat pump improve my EPC?

As every property is different, there is no one size fits all answer as to whether a heat pump would improve your energy performance certificate rating. Whether or not a heat pump will improve your EPC will depend upon a variety of factors, such as:

The type of pump you are considering - The type of pump installed will have a knock-on effect on your rating 

Your current heating system - Will it be replacing an oil or electric boiler or a gas boiler? If it replaces a gas boiler it may decrease your energy performance certificate whereas if it replaces an oil or electric boiler it may improve. 

Your property - Your property itself will play a part in your rating. If you have a heat pump in poorly insulated house then it may not have much effect, but if it is well insulated then it could improve. The size and hearing demands also play a role. 

Government incentives - Some regions offer financial support for heat pumps, making them more attractive even if the EPC doesn't reflect their benefits.

Are heat pumps worth the investment?

If you are wondering "Does heat pump increase home value?" you are not on your own. With the cost of living rising by the day and the importance of energy efficiency becoming clearer by the day, more and more people are looking for ways to keep their homes energy efficient whilst still boosting their property value. 

Whether or not a heat pump is a worthwhile investment for you will depend upon several factors, as well as your own property and circumstances. Here are some things to consider:

Energy efficiency:

Heat pumps are typically 2-3 times more efficient than traditional electric furnaces and boilers, and can even be more efficient than gas furnaces in some cases. This can lead to significant energy cost savings.

Dual functionality:

Most heat pumps offer both heating and cooling, eliminating the need for a separate air conditioner.

Environmentally friendly: 

Heat pumps use electricity, which can be generated from renewable sources like solar or wind power. They also don't produce any harmful emissions.

Government incentives:

Many governments offer financial incentives to encourage the installation of heat pumps, which can help offset the upfront cost.

High upfront cost:

Heat pumps can be significantly more expensive to install than traditional heating systems.

Performance in cold climates: 

While newer models are more efficient in cold weather, their efficiency can drop significantly in extreme temperatures. This may require a backup heating system in colder climates.


While generally low maintenance, heat pumps do require regular cleaning and professional checkups to maintain efficiency.

As well as the pros and cons behind the decision, you may also want to consider the following factors in relation to a heat pump investment: 

To consider:
Your current heating system:

If you're replacing an oil or electric furnace, a heat pump is likely to be more cost-effective than replacing a gas furnace.

Your climate:

Heat pumps are most efficient in mild climates. If you live in an area with very cold winters, you may need a backup heating system.

Your electricity costs:

If your electricity costs are high, the savings from a heat pump may be less significant.

Your home's insulation:

 A well-insulated home will help a heat pump operate more efficiently.

How to increase your home’s value with other energy efficient appliances 

Rising electricity bills and a growing awareness of the impact of our carbon footprint is leading many of us to invest in energy efficient appliances. These investments not only have the power to significantly reduce our spending but also add market value to our homes, making them more appealing should we choose to sell up. If you decide that a heat pump is not the right choice for you, you may wish to consider different appliances: 

Solar panels 

Solar panels are a worthwhile investment that could add between 0.5% - 2% to the market value of your home. Based on the average UK house price of £291,044, according to, this could be as much as £1455 - £5820. 

Of course, with an upfront purchase and installation cost just shy of £6,000, it’s worth noting that solar panels are very expensive in the first instance.  

EV Charging Station 

By 2030, the government plans to completely prohibit the sale of new diesel and petrol cars, and so now really is the ideal time to start thinking not only about an electric vehicle, but an EV charging station that you can use at home. 

Studies have shown that investing in an EV charging station could increase your home’s value by between 2%-2.75 - that’s between £5820 - £8003, based on the average UK house price of £291,044. Considering the fact an EV charger costs around £1000 to install, it’s a worthwhile investment that will make your home more attractive to the growing number of electric car owners. 

To find out more about EV chargers, check out our post ‘Will an electric car charger add value to my house?’ Alternatively, if you’re looking to sell your home and you’d like some support, let us help you. As leading cash home buyers with an excellent rating, we offer an efficient property sale experience and to help make the process as easy as possible, we handle everything from start to completion - including funding solicitor costs. What’s more, we offer the flexibility to choose a completion date within a minimum of 7 days, absolutely free of charge and entirely hassle-free. For more information, just give us a call on 0800 024 8444. 

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Alexandra Ventress

Alexandra is a Content Producer who enjoys writing articles, finding out about the property market, keeping you up to date with the latest trends.