Air-to-Air Heat Pump Costs: The Real Price Breakdown

Heat pumps are no longer a future technology in the UK. They are already becoming part of everyday home upgrades.

According to MCS, the UK’s official quality mark for small-scale renewables such as solar panels and heat pumps, a record 170,000 certified installations were completed in the first half of 2025.

>While most UK homeowners have heard about heat pumps, far fewer understand the differences between the types available and how much each option actually costs. One of the most affordable and flexible options is the air-to-air heat pump.

Before we go any further, let’s talk about what a heat pump is and the different types you can install in your home.

What Is a Heat Pump?

At its simplest, a heat pump is a clever bit of kit that moves heat instead of making it.

Rather than burning gas or using lots of electricity to create warmth, a heat pump takes heat from outside your home and brings it inside.

Even when it feels cold outside, there is still usable heat in the air or the ground, and heat pumps are very good at capturing it and putting it to work.

Think of it as a fridge in reverse. A fridge pulls heat out of food to keep it cold. A heat pump pulls heat from outside and uses it to warm your home. Same idea, just pointing in the opposite direction.

Because it is moving heat rather than generating it, a heat pump can typically deliver three to four units of heat for every unit of electricity it uses. This is measured using the Coefficient of Performance (COP), which is why heat pumps are so efficient.

Jargon Buster: Coefficient of Performance (COP)
A measure of efficiency used for heat pumps. A COP of 4 means that for every 1kW of electricity used, the system produces 4kW of heat energy.

You might not know this, but there are different types of heat pumps.

What Types of Heat Pumps Are There?

Before you start panicking about this sounding complicated, it’s not. Heat pumps are named for how they source heat and circulate it throughout your home.

Bearing this in mind, there are several different types of heat pumps, including:

• Air-to-Water Heat Pumps
• Air-to-Air Heat Pumps
• Ground-Source Heat Pumps

The air-source heat pumps are the most common in the UK, and they take heat from the outside air. However, there are two main types:

Air-to-Water Heat Pumps

As the name suggests, these systems heat water via heat gained from the surrounding air, which then flows through:

• Radiators
• Underfloor heating
• And your hot water tank

This is the type most people think of when they hear about heat pumps replacing boilers. They connect into a traditional wet central heating system and can qualify for the UK’s Boiler Upgrade Scheme (BUS) grant.

Air-to-Air Heat Pumps

These systems heat air, which is blown directly into rooms via indoor fan units, similar to air conditioning (though not always the same).

They do not use radiators, and they do not heat your hot water, but they do offer:

• Fast heating
• Built-in cooling for summer
• More straightforward installation in many homes

The simplicity of installation makes them popular for:

• Flats and apartments
• Home offices and garden rooms
• Extensions and loft conversions
• Homes without existing radiators

They are often cheaper to install than air-to-water heat pumps.

Air-to-air systems have traditionally been excluded from the BUS, which focuses on air-to-water and ground-source heat pumps. There have been pilot schemes and limited local funding programmes where certain air-to-air systems may qualify for support, but these are not part of the main national grant, and availability varies by area and eligibility.

This is why it is always important to check what funding, if any, applies to your specific property before making decisions based on grants alone.

Ground-Source Heat Pumps

The last type of heat pump is ground-sourced, using buried pipes. The system extracts heat from the earth and generally circulates it through a water network around the home.

They are very efficient and stable year-round, but they need:

• A lot of outdoor space
• Digging or drilling
• Much higher upfront costs

As a result, they are typically considered only for new builds, properties in rural areas, or significant renovation projects.

Now that we’ve gone over what heat pumps are and the differences between them, let’s get down to costs.

How Much Does an Air-to-Air Heat Pump Cost in the UK?

When discussing air-to-air heat pumps, the first question is usually about cost. However, these costs can vary for several reasons, such as:

• Size of your home
• How many rooms do you want to heat?
• What power is required to keep a home comfortable?

That said, there are sensible UK price ranges that most homeowners will fall into, and they look something like this.

Equipment Costs (Unit Only)

Generally, air-to-air heat pumps are less expensive than air-to-water heat pumps. This is due to the additional installation requirements for an air-to-water heat pump, which needs to be integrated into the home’s heating system.

An air-to-air system blows warm air straight into your rooms, they do not need radiators, pipes, or hot water tanks, which makes them quicker and cheaper to install.

According to GreenMatch, the units cost before installation are roughly:

While air-to-air system units are generally less expensive than air-to-water, there’s still a large variation in costs.

What Actually Affects The Price?

No two homes are exactly alike. They may look similar on the outside, but still need very different systems on the inside. Here are the main things that push costs up or down.

Brand Choice

Premium brands like Daikin tend to cost more upfront, but they are known for quiet operation, strong efficiency, and long-term reliability. Budget brands can be cheaper, but may not offer the same lifespan or support.

An Engineer’s View

While budget brands might save you money upfront, premium units like Daikin often pay for themselves through higher efficiency and part availability. In my experience, a slightly higher initial investment ensures your system runs quietly and reliably for that full 10-15 year lifespan.

– Rhys Powell, F Gas Engineer

Heating Capacity (measured in kW)

Bigger rooms and poorer insulation mean the system has to work harder, so you need a higher capacity unit. Generally, when you need more power, it usually means a higher price tag.

Number Of Indoor Units

Each room needs its own indoor unit, and each unit adds to the total system cost. Heating one open-plan space is much cheaper than trying to cover several separate rooms.

Layout Of The Property

Long pipe runs, tricky wall positions, or multi-storey homes can all affect how complex the installation becomes, which can influence both equipment choices and fitting costs.

It might come as a surprise to some UK homeowners, but air-to-air heat pump systems are not sold as a one-size-fits-all product. Each one needs to be designed and installed just for your property.

For this reason, quotes can vary widely between two different properties.

This being said, what are the maintenance and running costs like for an air-to-air heat pump system?

Running And Maintenance Costs Of Air-to-Air Heat Pumps

Once your system is in, the good news is that air-to-air heat pumps are relatively inexpensive to operate compared with most electric heating options.

What Do They Cost to Run?

Air-to-air heat pumps are highly efficient, typically achieving a COP of 3-4.

For a single room, running costs are often well under £1 a day for heating on standard electricity tariffs.

If you are heating several rooms or most of the house, typical annual running costs range from £800 to £1,500, depending on your home’s insulation and your preferred temperature.

What About Servicing?

Like any heating or cooling system, heat pumps do need a bit of looking after. An annual service is usually recommended to keep everything running smoothly and to protect your warranty.

This normally costs somewhere between £150 and £300, and mostly involves cleaning filters, checking performance, and making sure the system is operating as it should.

Most industry players agree that, with the correct servicing schedule, air-to-air heat pumps can operate for 10 to 15 years.

We should also note that there is no combustion or flue, and fewer high-stress components than in gas boilers, which helps keep long-term maintenance costs fairly predictable.

Can You Cut Running Costs Even Further?

Yes, and this is where things can get interesting.

Some energy suppliers offer heat pump or time-of-use tariffs that give you cheaper electricity at certain times of the day. If your system is set up to take advantage of these cheaper periods, you could cut your running costs quite noticeably.

Tariffs from suppliers like Octopus Energy or British Gas can, in the right setup, reduce heating costs by up to around 50% compared with standard rates.

How much you save depends on how flexible your heating schedule is and how your system is programmed.

For those who need financial help with installing a new air-to-air heat pump, updates to certain programmes could be exactly what you’re looking for.

Are There Any Grants or Discounts in 2026?

Good news, the money side of heat pumps is looking a bit friendlier than it used to, even if air-to-air systems are still not the main focus of government support.

Traditionally, the BUS has only covered air-to-water and ground-source heat pumps, with grants of up to £7,500.

Air-to-air systems have usually been excluded, but there has been growing discussion about limited support for certain air-to-air configurations in specific situations or pilot schemes.

Where support is available, it tends to be smaller than the full boiler grant and comes with tighter conditions, so it is always worth checking what is actually on offer in your area before budgeting around it.

In most cases, though, air-to-water systems are still the ones that qualify for the big headline grants.

0% VAT Still Makes A Big Difference

One saving that does apply to heat pumps more widely is VAT.

The government has extended the 0% VAT rate on the supply and installation of domestic heat pumps until at least March 2027, which means you are not paying the usual 20% VAT on the full system and installation.

On a multi-thousand-pound installation, that alone can knock a very noticeable chunk off the final bill.

What If You Are On A Low Income Or In An Inefficient Home?

If your household is on certain benefits, or your home has a poor energy rating (typically EPC E, F, or G), you may qualify for support through the ECO4 scheme.

In some cases, this can cover a large part, or even all, of the cost of installing an energy-efficient heating system, depending on eligibility and property type.

ECO funding is very situation-specific, so this is one area where getting proper advice really matters.

Now that we’ve gone over all the details, is an air-to-air heat pump right for your home?

Is Air-to-Air Right For Your Home?

For some homes, air-to-air heat pumps are a brilliant fit. They can make a lot of sense if you:

• Want both heating and cooling from one system
• Live in a flat or smaller property
• Do not have existing radiators or pipework
• Want a faster, less disruptive installation
• And are currently upgrading a home office, extension, or loft space

But they are not the best solution for everyone. Air-to-air systems may not be ideal if you:

• Need hot water from the same system
• Already have modern central heating radiators
• Or want to access government heat pump grants

In those cases, air-to-water heat pumps or high-efficiency gas boilers may still be the better option, depending on your home, your budget, and how you actually use your heating.

And this is where things get very personal, because the best system is not about trends or headlines, it is about what will work properly in your home, day in and day out.

That is why a tailored recommendation matters more than guessing from averages or comparing price lists online.

Here Is Where WarmZilla Can Help

With WarmZilla, you can answer a few quick survey questions about your property, the number of bathrooms, and how you use heating, and we will match you with the exact boiler or heat pump that suits your home.

You will then see a fixed, instant price for the right heating system, with no home visits or sales calls.

Instead of wondering which option might suit you, you can see real prices and real choices straight away and move forward when it feels right for you.