Heat pump costs for bungalows and park homes start at £7,000 after the grant but vary significantly by property type
If you own a bungalow or park home and are considering switching to a heat pump, the upfront cost is likely your first question. The answer depends heavily on your property’s size, existing heating system, and insulation levels. For a standard 3-bedroom bungalow, the typical installed cost of an air source heat pump ranges from £8,000 to £14,000 before the Boiler Upgrade Scheme (BUS) grant of £7,500, leaving you with a net cost of £500 to £6,500 (Energy Saving Trust, 2026).
For park homes, the costs are lower due to smaller floor areas and simpler heating systems, typically £6,000 to £10,000 before the grant. After the £7,500 BUS grant, the final cost to you is often £0 to £2,500 (GOV.UK Boiler Upgrade Scheme, 2026). The most-searched figure is that a park home heat pump can cost you nothing after the grant if the installation falls within the lower end of the range.
Bungalow heat pump costs depend on floor area
The installed cost for a bungalow is largely driven by its floor area. For a 70–90m² bungalow, typical costs are £8,000 to £12,000 before the grant; for a 90–120m² bungalow, expect £10,000 to £14,000 (MCS installer database cost averages, 2026). A key additional cost is radiator upgrades. Heat pumps operate at lower flow temperatures than gas boilers, so existing radiators may be undersized. Replacing them adds £1,500 to £3,000 to the total (DESNZ heat pump cost analysis, 2026).
Insulation is another critical factor. If your bungalow has an EPC rating of E or F, the BUS grant may not be available unless you first improve the insulation. Remedial work such as loft or cavity wall insulation can add £2,000 to £4,000 (GOV.UK BUS eligibility, 2026). In practice, a bungalow with poor insulation and undersized radiators could see total costs before the grant exceed £16,000, making the grant essential to keeping the project affordable.
Park home heat pump costs are lower but require specific installation considerations
Park homes typically have floor areas of 35–50m², which keeps the heat pump unit smaller and installation simpler. Installed costs range from £6,000 to £10,000 before the grant, and most installations now qualify for the full £7,500, bringing your outlay to as little as £0 (Energy Saving Trust park home case studies, 2026). However, park homes often have higher heat loss due to single-glazing or poor floor insulation. Upgrading to double-glazing and improving floor insulation can add £2,000 to £4,000 to the total project cost (MCS park home installation guidance, 2026).
Many park homes currently use electric storage heaters or LPG. Switching to a heat pump can reduce annual heating bills by 30–50% compared to electric resistance heating (Energy Saving Trust, 2026). If your park home is on a residential park, it is eligible for the BUS grant, but holiday homes or seasonal-use park homes are not (GOV.UK BUS eligibility, 2026).
Quick numbers heat pump cost and savings for bungalows and park homes
| Property type | Floor area (m²) | Installed cost (before grant) | Cost after BUS grant | Annual saving vs gas | Annual saving vs electric/LPG |
|---|---|---|---|---|---|
| Standard 3-bed bungalow | 90–120 | £10,000–£14,000 | £2,500–£6,500 | £400–£800 | £500–£1,100 |
| Small bungalow | 70–90 | £8,000–£12,000 | £500–£4,500 | £300–£600 | £400–£900 |
| Park home | 35–50 | £6,000–£10,000 | £0–£2,500 | £200–£500 | £500–£1,100 |
Source: Energy Saving Trust typical cost tables, 2026; Ofgem typical domestic consumption values, 2026; DESNZ fuel price comparison, 2026
The Boiler Upgrade Scheme grant covers £7,500 for bungalows and park homes from 2026
The BUS grant is set at £7,500 for all eligible air source heat pump installations in England and Wales, with no cap based on property type (GOV.UK Boiler Upgrade Scheme, 2026). This means both bungalows and park homes receive the same flat amount. To qualify, your property must have an EPC with no outstanding loft or cavity wall insulation recommendations. If your EPC shows these recommendations are still flagged, you will need to address them before applying (Ofgem BUS guidance, 2026).
The installer must be MCS-certified. Park homes on residential parks are eligible if they meet standard BUS criteria, but holiday homes or seasonal-use park homes are not (GOV.UK BUS eligibility, 2026). The grant is deducted from the installer’s quote, so you pay the net amount directly.
Running costs for a heat pump in a bungalow or park home are lower than gas or electric heating
In a well-insulated bungalow, a heat pump typically costs £600–£900 per year to run. This compares to £1,000–£1,400 for gas and £1,500–£2,200 for electric heating (Energy Saving Trust running cost calculator, 2026). For park homes, annual running costs are £400–£700 with a heat pump, versus £800–£1,200 for LPG and £1,200–£1,800 for electric storage heaters (Ofgem fuel price data, 2026).
These savings come from the heat pump’s efficiency. The seasonal performance factor (SPF) for a properly installed system is 3.0–4.0, meaning you get 3–4 kWh of heat for every 1 kWh of electricity used (Energy Saving Trust, 2026). This makes running costs significantly lower than direct electric heating, which has an SPF of 1.0.
Payback period for a heat pump in a bungalow or park home ranges from 3 to 10 years
For a bungalow switching from gas, the payback period after the BUS grant is typically 5–10 years, based on annual savings of £400–£800 (Energy Saving Trust payback analysis, 2026). For a park home switching from electric or LPG, payback is shorter at 3–6 years, with annual savings of £500–£1,100 (DESNZ heat pump cost-benefit model, 2026).
Payback is shorter for properties with higher existing fuel costs, such as electric, LPG, or oil heating, and longer for those with low-cost gas. If you are replacing electric storage heaters in a park home, the payback can be under 4 years. For a bungalow on mains gas, it is closer to 8–10 years. heat pump running costs vs gas boiler
You must use an MCS-certified installer to qualify for the BUS grant and warranty
The BUS grant requires the installer to be registered with the Microgeneration Certification Scheme (MCS) and the installation to comply with MCS standards (MCS installer standards, 2026). MCS certification also ensures eligibility for the 10-year warranty on the heat pump and any Renewable Heat Incentive (RHI) legacy payments that may still apply (GOV.UK BUS installer requirements, 2026).
To verify an installer, check the MCS online directory or ask for their MCS certificate number. Never accept a quote from an uncertified installer for a BUS-funded installation, as you will lose the grant and warranty cover. how to choose an MCS certified heat pump installer
Frequently Asked Questions
A heat pump for a bungalow costs £8,000 to £14,000 before the £7,500 Boiler Upgrade Scheme grant, leaving a net cost of £500 to £6,500 (Energy Saving Trust, 2026).
A heat pump for a park home costs £6,000 to £10,000 before the £7,500 grant, with a net cost of £0 to £2,500 (GOV.UK Boiler Upgrade Scheme, 2026).
Yes, you can get the £7,500 BUS grant for a bungalow if it has an EPC rating of C or above (GOV.UK BUS eligibility, 2026).
Yes, park homes are eligible for the £7,500 BUS grant if they meet EPC and installation requirements (GOV.UK Boiler Upgrade Scheme, 2026).
Yes, you may need to upgrade radiators, costing £1,500 to £3,000, as heat pumps run at lower flow temperatures (DESNZ heat pump cost analysis, 2026).
