Heat pump or gas boiler: which should you choose?

Checked November 2026

Honestly? There’s no single right answer. A gas boiler is cheaper to put in. A heat pump costs more upfront, even with the £7,500 grant off. But designed and set up well, it can cost about the same to run at today’s prices, or a bit less. Which way you go comes down to your budget and your house, how long you’ll stay there and whether you can get the grant.

We fit both. So we’ve got no reason to push you either way. What follows is how we’d think it through if it was our own house.

Which is cheaper to install?

A boiler. It’s not close.

Upfront cost (estimates)	Gas boiler	Air source heat pump
Typical installed cost	about £3,500 (DESNZ, 2026)	about £12,000 (EST, Oct 2026)
Grant	none	£7,500 (£9,000 if replacing oil or LPG)
Typical cost to you	about £3,500	about £4,500

Those are national averages. They aren’t quotes. A like for like boiler swap can come in under £3,500, while moving the boiler or switching type can make it a lot more. Heat pumps are the same. Several radiators to change and you can end up well above the typical figure.

You won’t get a government grant for a new gas boiler. The Boiler Upgrade Scheme covers heat pumps (and biomass in some cases). To get it you need to own the home and be replacing a fossil fuel system.

Two dates to put in the diary. Heat pump installs are at 0% VAT right now, going back up to 5% on 1 April 2027 (HMRC). And Ofgem says the £9,000 rate for oil and LPG homes runs until 31 March 2027.

Want the full breakdown? See how much a new boiler costs and how much an air source heat pump costs.

Which is cheaper to run?

Closer than most people think. Under the Ofgem price cap for 1 October to 31 December 2026, a unit of electricity costs about 3.3 times a unit of gas. Sounds bad. But a heat pump gives out several units of heat for every unit of electricity it uses. On our estimate a well designed heat pump at today’s cap rates comes out roughly level with gas, maybe a touch cheaper. A badly designed one won’t. We’ve done the sums, with every assumption shown, in heat pump running costs vs a gas boiler.

How long do boilers and heat pumps last?

Baxi makes boilers. It says one should last 10 to 15 years if it’s serviced every year and looked after.

Heat pumps are harder to pin down. We haven’t found an official figure we’d trust. You’ll see 20 years and more quoted online, but it’s mostly forums and sales pages saying it. In reality it varies by make and by how well the system’s looked after. Warranty terms vary by maker too, so check what yours asks of you.

Our view? A boiler that’s 12 or 13 years old and still running fine gives you time to think. One that’s already failing doesn’t. The decision gets made in a hurry and that usually means a like for like boiler. Look at your options before that day comes.

Are gas boilers being banned?

No, not for existing homes. You can still swap a gas boiler for a new gas boiler. From 24 March 2027 the Future Homes Standard brings low carbon heating to new builds in England, and our guide to the gas boiler ban explains what that does and doesn’t mean for you.

When is a new boiler the better choice?

Sometimes a gas boiler replacement is simply the honest answer. We’d usually steer you that way when:

• Your budget is tight. The boiler’s the cheaper install by a clear margin, even with the heat pump grant taken off.
• You can’t get the grant. Renting, a new build or social housing usually rules it out. Take away the £7,500 and a heat pump is a much harder sum.
• You’re moving in the next few years. The extra upfront cost probably won’t pay back for you.
• There’s nowhere sensible for the kit. A heat pump needs room outside for the unit and usually a cupboard for a hot water cylinder. Some flats and small terraces just haven’t got both.
• Your boiler has failed in winter. Need heat this week? A boiler can go in fast. A heat pump needs a survey and a design first.
• Your home is listed. A heat pump isn’t permitted development on a listed building, so you’d need consent. Still doable. It just takes longer.

When is a heat pump the better choice?

Flip it round. An air source heat pump installation deserves a serious look when:

• You’re replacing oil or LPG. Ofgem says the grant for these homes is £9,000 until 31 March 2027. That’s £1,500 more than a gas home gets.
• You own the home and plan to stay. You get the grant, and you’re around long enough to see the running costs play out.
• Your home holds its heat reasonably well. Loft insulated, cavities filled, decent windows. The less heat you lose, the smaller and cheaper the heat pump can be.
• You have room for a cylinder and an outdoor unit. A garden, a side return or a back yard where the unit can sit away from bedroom windows.
• You’re happy to switch tariff. On a heat pump time of use tariff the running cost case gets a lot better.

Our guide on whether your home suits a heat pump goes through each of these properly.

What should you check in a Hinckley, Coventry or Leamington Spa home?

We see a real mix of houses round Hinckley, Coventry and Leamington Spa. Some things to check on yours:

• Terraces with small back yards. Ask where the outdoor unit would go. And how close it’d be to next door.
• 1930s semis with a combi. Ask where the cylinder would live, especially if the airing cupboard went years ago.
• Older and period homes. Get a full room by room heat loss survey before you decide anything. Older houses vary a lot, so the design matters more.
• Conservation areas. A heat pump can’t go on a wall or roof facing a road without planning permission. Round the back may still be fine under the usual rules, and our guide to heat pump planning permission sets them out.

Still can’t decide? That’s normal. The best next step is a survey. It shows you what a heat pump would need in your house, and then you’re comparing it with a boiler quote on real numbers instead of averages. Our local pages cover heat pump installation in Hinckley, heat pump installation in Coventry and heat pump installation in Leamington Spa.

Frequently asked questions

Will a heat pump add value to my house?

We haven’t seen reliable UK figures on this. So we won’t make one up. Buyers might like lower running costs and no gas supply to worry about, but you can’t bank on it. Don’t fit a heat pump to push the sale price up. Fit one because it suits how you’ll live in the house.

Can I get a grant for a new gas boiler?

No. The Boiler Upgrade Scheme only pays towards heat pumps and some biomass boilers.

Is a hybrid a good middle ground?

In some homes, yes. Just know that a hybrid which keeps a gas boiler doesn’t qualify for the Boiler Upgrade Scheme grant.

Do I have to change my boiler before it breaks?

No. Nothing says you have to replace a gas boiler that’s working.

Not sure which way to go? Our free home assessment shows what a heat pump would need in your home. Then you can weigh it against a boiler properly.

Sources

• DESNZ, “Boiler Upgrade Scheme 2026 to 2030: Summary Business Case” (average gas boiler cost about £3,500 including VAT), checked 3 November 2026, assets.publishing.service.gov.uk
• Energy Saving Trust, “Air source heat pumps: costs, savings and benefits” (typical cost about £12,000, last updated 20 October 2026), checked 3 November 2026, energysavingtrust.org.uk
• Ofgem, “Boiler Upgrade Scheme”, checked 2 November 2026, www.ofgem.gov.uk
• GOV.UK, “Notice of approved grant categories and values for the Boiler Upgrade Scheme”, checked 2 November 2026, www.gov.uk
• GOV.UK, “Check if you’re eligible for the Boiler Upgrade Scheme”, checked 2 November 2026, www.gov.uk
• HMRC, “VAT on energy-saving materials and heating equipment (VAT Notice 708/6)”, checked 3 November 2026, www.gov.uk
• Ofgem, “Changes to energy price cap between 1 October and 31 December 2026”, checked 3 November 2026, www.ofgem.gov.uk
• Baxi, “How long does a boiler last?”, checked 3 November 2026, www.baxi.co.uk
• GOV.UK, “The Future Homes and Buildings Standards: Building Circular 01/2026”, checked 3 November 2026, www.gov.uk
• legislation.gov.uk, GPDO Schedule 2 Part 14 Class G (air source heat pumps), checked 2 November 2026, www.legislation.gov.uk