UK Heat Pump Installations Hit Record High: What the Data Shows

UK heat pump installations are on track to reach record levels in 2024, with over 55,000 units installed in the first half of the year alone – a 36% increase on the same period in 2023. The government grant has been a significant driver, with voucher applications exceeding government targets. In the North West, installations have grown even faster than the national average, driven by strong local installer networks, active council support programmes and increasing homeowner awareness. For Lancashire homeowners who have been watching from the sidelines, the data suggests the technology is maturing rapidly and the early adopter phase is passing.

The numbers tell a story of a market that is finally gaining momentum after years of slow growth. Here is what the latest data reveals about costs, performance, customer satisfaction and what it means for your decision about whether and when to install a heat pump.

The Installation Numbers

Key statistics from the UK heat pump market in 2024:

• Total installations (H1 2024): Approximately 55,000 heat pumps installed, up 36% year-on-year
• government grant scheme voucher applications: Over 40,000 in the first half of 2024, significantly above the government’s target trajectory
• Average system cost: £10,500-£12,500 before the government grant (a slight decrease from 2023)
• Average cost to homeowner after government grant: £3,000-£5,000
• Most popular system size: 5-8kW air source heat pumps
• Top brands installed: Vaillant, Daikin, Mitsubishi, Samsung, Grant

The North West region accounts for approximately 11% of all UK heat pump installations, reflecting the region’s housing mix and active local authority support. Lancashire and Greater Manchester combined are estimated to have seen 5,000-6,000 heat pump installations in the first half of 2024.

What Is Driving the Growth?

Several factors are converging to accelerate heat pump adoption:

The government grant increase: The grant amount was increased in late 2023, significantly reducing the net cost to homeowners. At £3,000-£5,000 out of pocket, a heat pump is now affordable for many more households.

Growing installer capacity: The number of qualified heat pump installers has increased by over 40% in two years. In Lancashire, the installer base has grown from a handful of specialists to dozens of qualified companies, improving availability and competition.

Improved technology: Modern heat pumps are quieter, more efficient and more compact than models from even five years ago. Products like the Vaillant Arotherm Plus and Daikin Altherma 3 achieve seasonal COPs of 3.2-3.8 in real-world UK conditions, making running costs competitive with gas.

Rising energy awareness: The energy price crisis of 2022-23 made homeowners acutely aware of their heating costs and vulnerability to gas price volatility. Heat pumps, powered by increasingly renewable electricity, offer a route away from fossil fuel dependence.

Regulatory direction: The proposed building standards (expected 2025) will ban gas boilers in new builds. While this does not directly affect existing homes, it signals the direction of travel and encourages homeowners to plan ahead.

Real-World Performance Data

The a government heat pump monitoring programme, which monitored hundreds of real heat pump installations across the UK, provides valuable performance data:

• Average seasonal COP: 2.8 across all monitored installations. Top-performing systems achieved 3.5-4.0. Poorly performing systems were as low as 2.0-2.3.
• Key determinant of performance: Flow temperature. Systems running at 35-40 degrees achieved significantly higher COPs than those running at 55-60 degrees.
• Customer satisfaction: 83% of heat pump owners said they were satisfied or very satisfied with their system after the first winter.
• Main complaints: Higher-than-expected running costs (usually linked to poor installation or inadequate insulation), noise (a minority of cases), and difficulty adjusting to the different heating pattern.

The data clearly shows that well-designed installations in well-insulated homes perform excellently, while poorly designed systems in inadequately insulated homes underperform. The quality of the installation matters as much as the quality of the heat pump itself.

What This Means for Lancashire Homeowners

The record installation numbers and improving performance data send several signals to Lancashire homeowners:

The technology is well-established. With over 200,000 heat pumps now installed across the UK, this is no longer an experimental technology. The products, installation methods and support infrastructure are mature.

Installer quality is improving. As the market grows, the average quality of installations is rising. More installers have more experience, training programmes have expanded, and installer standards have been tightened. However, it is still important to choose an experienced, well-reviewed installer.

Costs are stabilising. After several years of price increases driven by supply chain issues, heat pump costs have stabilised and even decreased slightly in 2024. The increased government grant means the net cost to homeowners is at its lowest point.

Insulation first remains key. The performance data reinforces that insulating your home before or alongside a heat pump installation is critical. A heat pump in a poorly insulated Lancashire terrace will cost more to run than expected. Our guides to solid wall insulation and cavity wall insulation cover the priority measures.

Now is a good time to act. Government grants of up to £7,500, 0% VAT and improving technology create a favourable window. Future changes to funding, VAT rates or eligibility criteria are uncertain. Locking in the current benefits makes financial sense.

The Remaining Barriers

Despite the positive trend, barriers remain:

• Upfront cost: Even after the grant, £3,000-£5,000 is a significant outlay compared to a £2,500-£3,500 gas boiler replacement.
• Running cost parity: At current gas and electricity prices, heat pump running costs are roughly similar to gas boiler costs, not dramatically lower. The financial case strengthens if electricity-to-gas price ratios improve.
• Housing stock suitability: Lancashire’s older terraces and cottages need insulation improvements before a heat pump can work efficiently. This adds cost and complexity.
• Consumer awareness: Many homeowners still have limited understanding of heat pumps and are cautious about switching from a familiar technology.

These barriers are real but shrinking. Our detailed guides to heat pump running costs vs gas boilers and installing heat pumps in Victorian terraces address the practical concerns for Lancashire homeowners.

Is the UK on track for its heat pump targets?

The UK government’s target of 600,000 heat pump installations per year by 2028 remains very ambitious. Current installation rates of approximately 100,000-120,000 per year are growing rapidly but still well short of the target. Most industry analysts expect steady growth towards 200,000-300,000 per year by 2028, with the 600,000 target likely to be pushed back or revised.

Will heat pump costs continue to fall?

Equipment costs are expected to decrease modestly as manufacturing scales up and competition increases. Installation costs depend largely on labour, which is unlikely to fall. The net effect is a gradual reduction in total installed costs, but dramatic price drops are not expected in the near term. The government grant remains the most significant cost reducer for homeowners.

Should I wait for hydrogen boilers instead?

Hydrogen as a home heating fuel remains uncertain. Government-backed trials are ongoing, but no decision has been made on whether hydrogen will be piped to homes at scale. Most energy policy experts expect heat pumps to be the primary home heating technology, with hydrogen playing a limited role (if any) in residential heating. Waiting for hydrogen means waiting indefinitely and missing the benefits of current heat pump grants and technology. Heat pumps are available, proven and incentivised today.