UK Heat Pump Installations: 2025 Year in Review

The UK installed approximately 250,000 heat pumps in 2025, a 35% increase on 2024’s figure of around 185,000. While this is significant growth, it falls well short of the government’s target trajectory towards 600,000 annual installations by 2028. In Lancashire, heat pump uptake increased by roughly 40%, driven by up to £7,500 in government grants, growing installer capacity, and rising awareness of the technology’s benefits. Here is what the 2025 data tells us about where the market is heading.

National Installation Numbers

The 250,000 figure for 2025 represents a meaningful acceleration from previous years. For context, the UK installed around 55,000 heat pumps in 2022, 100,000 in 2023, and 185,000 in 2024. The growth curve is steepening, but from a low base.

Air source heat pumps accounted for approximately 90% of installations, with ground source making up most of the remainder. The dominance of air source reflects its lower cost, simpler installation, and suitability for the majority of UK housing. Ground source remains popular for larger rural properties and new builds where the additional cost is justified by higher efficiency.

The government grant was the primary driver of growth. Over 80,000 government grant scheme vouchers were issued in 2025, roughly double the 2024 figure. The increase in grant value from £5,000 to £7,500 in late 2023 significantly improved the financial case, and awareness of the scheme has grown through media coverage, installer marketing, and word-of-mouth recommendations from early adopters.

Lancashire and North West Trends

Lancashire and Greater Manchester saw strong growth in 2025, with an estimated 8,000 to 10,000 heat pumps installed across the region. The North West has historically lagged behind southern England in heat pump adoption, partly due to the predominance of gas-heated homes and a slower build-up of installer capacity. Both factors are changing.

The number of qualified heat pump installers operating in Lancashire increased from around 15 in early 2024 to over 30 by the end of 2025. This expanded capacity has reduced wait times from 12 to 16 weeks to a more manageable 4 to 8 weeks for most installations. Several national installation companies have also set up North West offices, increasing competition and helping to keep prices competitive.

Geographically, uptake in Lancashire has been highest in the Ribble Valley, Fylde, and South Ribble – areas with a higher proportion of detached and semi-detached homes with good outdoor space for the external unit. Urban terraced areas in Burnley, Blackburn, and Hyndburn have seen slower adoption, partly due to space constraints and partly because these areas have a higher proportion of tenants and lower-income homeowners.

Most Popular Heat Pump Brands in 2025

Based on certification installation data and installer reports, the most installed heat pump brands in the UK during 2025 were:

• Vaillant – The market leader, particularly the Arotherm Plus range with R290 refrigerant. Popular for its efficiency, quiet operation, and strong UK support network.
• Mitsubishi Electric – The Ecodan range remains one of the most widely installed. Long UK track record and excellent reliability ratings.
• Daikin – The Altherma 3 range gained significant market share in 2025, particularly in the North West where its cold-weather performance is valued.
• Samsung – Rapid growth from a smaller base. The EHS range appeals on price, offering strong competition to the established European brands.
• Grant – The Aerona3 is popular in rural areas and among installers transitioning from oil boiler installations. Strong in Lancashire’s off-gas communities.

In Lancashire specifically, Vaillant and Mitsubishi are the most commonly installed, reflecting their popularity among the region’s established heating engineers who are retraining as heat pump installers.

Customer Satisfaction and Performance Data

Customer satisfaction with heat pump installations has improved steadily. The Electrification of Heat demonstration project and subsequent surveys show that around 80% of UK heat pump owners are satisfied or very satisfied with their system, up from around 70% in earlier surveys. The main factors driving dissatisfaction are noise from poorly positioned outdoor units, higher-than-expected electricity bills (usually due to incorrect system settings or inadequate insulation), and teething problems during the first winter as owners learn how to use the system optimally.

The certification data shows that well-installed heat pumps in well-insulated homes consistently achieve COPs of 3.0 to 4.0, delivering running costs comparable to or lower than gas. Homes with poor insulation or incorrectly configured systems perform significantly worse, underscoring the importance of proper installation and a fabric-first approach to home energy.

Lancashire installers report that customer expectations are more realistic than two or three years ago. Early adopters sometimes expected heat pumps to work identically to gas boilers, leading to frustration when they discovered the lower flow temperatures and the benefits of continuous, low-level heating. Today’s buyers are better informed and more willing to adapt their heating habits.

Barriers to Faster Adoption

Despite strong growth, several barriers continue to slow heat pump adoption in Lancashire and nationally:

Upfront cost. Even with up to £7,500 in government grants, a heat pump costs £1,000 to £6,500 out of pocket. For many Lancashire households, this is a significant expense, particularly compared to a £2,000 to £3,000 gas boiler replacement. Further cost reductions through manufacturing scale and increased competition are needed.

Electricity-to-gas price ratio. Electricity costs 3.8 times more per kWh than gas under the current the energy regulator cap. A heat pump’s COP of 3 to 4 bridges most of this gap, but the running cost advantage over gas is modest rather than dramatic. A rebalancing of energy taxation (moving green levies from electricity to gas) would improve the economics.

Installer capacity. While growing, the number of trained heat pump installers is still insufficient to meet the government’s targets. Training programmes are expanding, but it takes time for gas engineers to retrain and gain experience with heat pump installations.

Consumer awareness. Many homeowners still have limited understanding of heat pumps. Myths about cold-weather performance, noise, and running costs persist. Better consumer information and more real-world demonstrations are helping, but the market has not yet reached a tipping point where heat pumps are considered the default choice.

What to Expect in 2026

Industry analysts expect UK heat pump installations to reach 300,000 to 350,000 in 2026, continuing the growth trajectory. Key factors that will influence the pace include the continuation of the government grant at £7,500, any changes to electricity and gas pricing that affect running costs, the rollout of the proposed building standards for new builds, and growing installer capacity as more engineers complete heat pump training.

For Lancashire homeowners considering a heat pump in 2026, the market conditions are favourable. Installer availability is the best it has been, prices are competitive, the government grant remains generous, and the range of available products suits the county’s housing stock. The 2025 growth trend shows that heat pumps are moving from niche to mainstream – a transition that will accelerate further in the years ahead.

How does the UK compare to other European countries?

The UK is still behind many European neighbours. France installed over 600,000 heat pumps in 2023, and countries like Norway, Sweden, and Finland have heat pump penetration rates above 40% of homes. Germany, Italy, and Poland all install more heat pumps annually than the UK. However, the UK’s growth rate is among the highest in Europe, suggesting the gap is closing.

Are there enough installers in Lancashire for the expected demand?

Current capacity of 30+ qualified installers in Lancashire can handle around 3,000 to 5,000 installations per year. If demand increases significantly, wait times may extend. However, new installers are entering the market every month, and several Lancashire colleges and training centres (including Burnley College and Myerscough College) offer heat pump training courses to heating engineers looking to expand their skills.

Will heat pump prices continue to fall?

Probably modestly. Heat pump unit prices have fallen 10% to 15% since their 2022 peak as supply chains normalised and competition increased. Further reductions are expected as manufacturing volumes grow, particularly for UK-assembled units. Installation labour costs are unlikely to fall significantly because skilled tradespeople are in high demand across the construction sector.