AOS Blog
Heat Pumps and Property Value: Does Renewable Heating Increase Home Worth?
With energy prices continuing to rise and environmental considerations becoming increasingly important to homebuyers, many property owners are wondering whether installing an air source heat pump could increase their home's value. As one of the leading heat pump installers across Cambridgeshire, Hertfordshire, Buckinghamshire and surrounding areas, we at AOS Energy Efficient Heating Systems are often asked this very question. Let's explore how these renewable heating systems might impact your property's worth.
The Changing Property Market
The UK property market has evolved significantly in recent years, with energy efficiency becoming a much more important factor for buyers. According to recent surveys, more than 70% of house hunters now consider a property's energy performance when making purchasing decisions. This shift in priorities offers a real opportunity for homeowners who invest in renewable heating solutions.
Energy Performance Certificates (EPCs) and Property Value
One of the most tangible ways that heat pumps can affect property value is through improved Energy Performance Certificate (EPC) ratings. Every home sold or rented in the UK requires an EPC, which rates energy efficiency from A (most efficient) to G (least efficient).
Installing an air source heat pump typically improves a property's EPC rating considerably, sometimes by several bands. Research suggests that homes with better EPC ratings command higher prices – with each step up the EPC scale potentially adding 2-3% to a property's value. For an average home in Cambridgeshire or Hertfordshire, this could translate to thousands of pounds in added value.
Future-Proofing Your Property
Forward-thinking homebuyers are increasingly aware that government policies are moving towards phasing out fossil fuel heating systems. The UK government has set ambitious targets to reach net-zero emissions by 2050, with plans to phase out gas boilers in new-build homes from 2025.
By installing an air source heat pump today, you're essentially future-proofing your property. When it comes time to sell, your home will already meet upcoming energy standards, making it more attractive to buyers who won't face the prospect of mandatory heating system upgrades in the near future.
For more information on how heat pumps contribute to environmental goals, visit our page on the road to net zero.
Running Costs and Buyer Appeal
Today's homebuyers are increasingly savvy about ongoing costs. While the initial investment in a heat pump may be higher than a traditional boiler, the running costs can be significantly lower, especially when paired with good insulation.
During property viewings, being able to demonstrate lower energy bills can be a powerful selling point. Many of our customers across Buckinghamshire and Cambridgeshire report energy savings of 30-50% compared to their previous heating systems. These potential savings make properties with heat pumps particularly attractive in a market where energy costs are a growing concern.
If you're curious about potential running costs, our blog on whether heat pumps are expensive to run provides a detailed breakdown.
Government Incentives Boost Appeal
The current £7,500 grant available through the Boiler Upgrade Scheme has significantly reduced the initial cost barrier for heat pump installations. While this direct financial benefit goes to the person installing the system, the presence of a modern, government-approved heating system that's already in place can be very appealing to potential buyers.
When selling a property with a recently installed heat pump, highlighting that the new owners won't need to concern themselves with upgrading the heating system – a cost they would potentially face with properties still using gas or oil boilers – can be a significant advantage.
For details on available grants, see our £7,500 heat pump grant page.
Comfort and Modern Living
Beyond the financial considerations, homes with well-designed heat pump systems offer a level of comfort that's increasingly sought after. Modern heat pumps provide consistent, even heating throughout the property and can offer cooling in summer months (with appropriate systems).
This improved living environment is something estate agents are becoming more adept at highlighting, especially to buyers who have previously experienced such systems or who are environmentally conscious.
What Estate Agents Say
We've spoken with several estate agents across Hertfordshire and Cambridgeshire who report that properties with renewable heating systems like air source heat pumps are becoming easier to sell, particularly to younger buyers and those moving from European countries where heat pumps are more common.
One agent told us: "Five years ago, we barely mentioned the heating system unless asked. Now, if a property has a heat pump, it's one of the first things we highlight in the listing because we know it attracts interest."
Real-World Value Increase
While exact figures vary depending on location, property type, and local market conditions, our experience suggests that a well-installed heat pump system can add between 3-7% to a property's value. In areas with higher property prices, such as parts of Hertfordshire and Cambridgeshire, this percentage can represent a significant sum.
However, it's worth noting that to maximise this value increase, the heat pump should be:
• Professionally installed by qualified technicians (like our MCS-accredited team)
• Properly sized for the property
• Integrated with appropriate heat emitters (radiators or underfloor heating)
• Accompanied by good insulation where possible
For information on ensuring proper installation, read about what to expect from your heat pump installation.
The Importance of Home Assessment
Every property is different, which is why we always conduct thorough heat loss surveys and system designs before recommending heat pump solutions. This approach ensures that the system will perform efficiently in your specific property – an important factor in realising any potential increase in property value.
A poorly specified or installed system could potentially have the opposite effect, highlighting the importance of choosing experienced installers with a proven track record in your local area.
Is It Worth the Investment?
When considering whether a heat pump will increase your property value, it's important to take a holistic view that includes:
• Potential increase in property value
• Energy bill savings over the system's lifetime
• Available grants and incentives
• Improved comfort and living conditions
• Environmental benefits
• Future-proofing against policy changes
For many homeowners in the areas we serve, the combination of these factors makes installing a heat pump a sound investment, even beyond any immediate impact on property values.
Get Expert Advice for Your Property
If you're considering an air source heat pump and want to understand how it might affect your specific property's value, our experienced team can provide tailored advice. We've worked with hundreds of homeowners across Cambridgeshire, Hertfordshire, Buckinghamshire and beyond, giving us unique insight into the local property market and heating requirements.
Contact us today on 0800 028 28 23 or through our contact page to arrange a no-obligation consultation. Our friendly local team will be happy to discuss how an air source heat pump installation could not only reduce your energy bills and carbon footprint but potentially increase your property's market appeal and value, too.
