A heat pump can cut a second home’s heating bill by 30-50% compared to oil or LPG, but the upfront cost is £7,000-£13,000 after the Boiler Upgrade Scheme grant
If you heat a second home with oil or LPG, your running costs are high. A heat pump can reduce those costs significantly, but the upfront price is a major factor.
The average installation cost for an air-source heat pump in a UK home is £12,000-£16,000. The Boiler Upgrade Scheme (BUS) offers a £7,500 grant, applied for by the installer, not the homeowner (Energy Saving Trust, 2026; GOV.UK Boiler Upgrade Scheme, 2026). This brings your net cost to between £4,500 and £8,500. Running costs depend on your current fuel. Switching from oil (around 10p/kWh) to a heat pump with a Seasonal Coefficient of Performance (SCOP) of 3.5 (meaning it produces 3.5 units of heat for every unit of electricity) costs about 7p/kWh, saving 30-50% annually (Ofgem tariff data, 2026; Energy Saving Trust heat pump running cost calculator, 2026). Ground-source heat pumps cost £24,000-£35,000 installed. They are less common for second homes due to land requirements and the same £7,500 BUS grant cap (MCS installer directory cost data, 2026).
The Boiler Upgrade Scheme grant is available for second homes, but only if the property is your main residence or meets specific criteria
The BUS grant is a devolved scheme. In England, it is available only for domestic properties that are your “main residence”. Second homes are generally excluded (GOV.UK Boiler Upgrade Scheme eligibility, 2026). In Scotland, the Home Energy Scotland loan and grant can apply to second homes if they are self-catering holiday lets with a valid licence (Home Energy Scotland, 2026). If your second home is rented out as a furnished holiday let (FHL) for 105 or more days per year, it may qualify for VAT relief on installation and separate grant routes (HMRC FHL rules, 2026). Check your specific situation before assuming the grant applies.
Quick numbers heat pump costs, savings, and payback for a typical UK second home
| Metric | Typical value | Source |
|---|---|---|
| Air-source heat pump (ASHP) cost after BUS grant | £4,500 – £8,500 | GOV.UK, 2026 |
| Ground-source heat pump (GSHP) cost after BUS grant | £16,500 – £27,500 | MCS, 2026 |
| Annual running cost savings vs. oil | £800 – £1,200 | EST, 2026 |
| Annual running cost savings vs. LPG | £600 – £900 | Ofgem, 2026 |
| Annual running cost savings vs. electric storage heaters | £200 – £400 | EST, 2026 |
| Typical payback period (years) vs. oil | 4.5 – 12 | EST payback calculator, 2026 |
| Typical payback period (years) vs. LPG | 6 – 15 | EST payback calculator, 2026 |
| SCOP expected for modern ASHP | 3.0 – 3.5 | MCS, 2026 |
A heat pump is the most direct answer to “heat pump second homes uk”, it cuts carbon and running costs, but payback takes 7-15 years versus oil
For a second home heated by oil, a heat pump can save significant money. A property using around 2,500 litres of oil per year at 75p/litre spends £1,875 annually. An ASHP with a SCOP of 3.5 costs about £875/year to run, saving £1,000/year (EST figures, 2026; Ofgem tariff data, 2026). Payback on a £12,000 ASHP (after £7,500 BUS grant equals £4,500 net cost) is 4.5 years versus oil. But if the BUS grant is not available (for example, a second home that is not your main residence), the net cost is £12,000 and payback stretches to 12 years (EST payback calculator, 2026). The key word search “heat pump second homes uk” often leads to confusion about eligibility. The plain answer is yes, they work, but the grant is the main barrier. guide to heat pump running costs for holiday homes
MCS certification is essential for grant eligibility and insurance compliance for second home heat pumps
Every heat pump installed under the BUS grant must be installed by an MCS-certified installer and use MCS-certified equipment (MCS website, 2026). For second homes not eligible for the BUS, MCS certification is still strongly recommended. It is required for most home insurance policies covering heat pumps, and for any future resale value (MCS website, insurance industry guidance, 2026). TrustMark certification is also required for BUS-funded installations. Check the installer is on both the TrustMark and MCS registers (TrustMark website, 2026).
Planning permission is rarely needed for air-source heat pumps in second homes, but listed buildings and conservation areas have strict rules
In England, air-source heat pumps are permitted development under Class I, Part 1 of the Town and Country Planning Order. This applies as long as the unit is within 1 metre of the property boundary and is not on a roof (Planning Portal, 2026). For listed buildings or properties in conservation areas, planning permission and listed building consent are required. This is common for older second homes (Historic England guidance, 2026). Ground-source heat pumps with vertical boreholes always need planning permission for the groundworks, regardless of property type (Planning Portal, 2026).
The best heat pump size for a second home is smaller than for a main home
A typical 3-bedroom second home (around 100m²) needs a 6-8kW heat pump. This is smaller than the 10-12kW often installed in a main home of the same size, because the house is not continuously heated (MCS heat pump sizing guide, 2026). Oversizing a heat pump for a second home leads to short cycling, lower efficiency (SCOP drops to 2.5-3.0), and higher running costs. Always get a room-by-room heat loss calculation (MCS installer guidance, 2026). Installers should factor in the property’s unoccupied periods. A heat pump with a buffer tank or smart controls, such as weather compensation, can maintain a low background temperature of 10-12°C and boost quickly when you arrive (EST heat pump controls advice, 2026). guide to heat pump sizing for intermittent use
Frequently Asked Questions
No, the Boiler Upgrade Scheme (BUS) in England is only available for your main residence. Second homes are generally excluded (GOV.UK Boiler Upgrade Scheme eligibility, 2026).
After the £7,500 BUS grant, an air-source heat pump costs £4,500-£8,500 net. Ground-source heat pumps cost £24,000-£35,000 installed, with the same grant cap (MCS installer data, 2026).
Yes, switching from oil (10p/kWh) to a heat pump (7p/kWh with SCOP 3.5) cuts heating bills by 30-50% annually (Ofgem tariff data, 2026; Energy Saving Trust, 2026).
Yes, if your second home is a furnished holiday let (FHL) rented for 105+ days per year, you may qualify for VAT relief on installation (HMRC FHL rules, 2026).
In Scotland, the Home Energy Scotland loan and grant can apply to second homes if they are self-catering holiday lets with a valid licence (Home Energy Scotland, 2026).
