Rented sector faces ‘biggest shake-up in decades’ as homes move to heat pumps

The next decade will see the biggest shake-up of the heating sector in living memory as the country’s homes switch to heat pumps, says the sector’s trade body.

To achieve the planned phase-out of new fossil fuel boilers by the mid-2030s and to meet the government’s target of 600,000 heat pumps being installed annually by 2028, the Heat Pump Association is calling for a strong partnership between industry and government.

Its report, Transforming Britain’s Heating – A Pathway to Heat Pumps, suggests that policies could include making homes heat pump-ready by requiring room-by-room heat loss calculations and by hydraulic balancing and recalibrating existing boiler systems to lower flow temperatures to a maximum of 55 deg C.

Landlords soon face making decisions about whether to fork out for retrofit works if government proposals that new tenancies will have to reach an EPC band C by 2025 get the go-ahead.

In the meantime, recent reports show that ground source heat pump installation costs can add up to an eyewatering £35,000, and are incompatible with most homes.

Higher costs

The association says it recognises that the installed cost of heat pump systems is higher than replacing a fossil fuel boiler alone, but believes that as volumes increase, costs are likely to come down.

It adds that while subsidies offsetting upfront costs through the Boiler Upgrade Scheme and the zero-rated VAT currently play an important role, some form of extra subsidy will be needed until the transition is complete.

Chair Phil Hurley (main picture) says: “Significant investments in UK manufacturing and installer training have already been made in response to some of the signals government has given so far. Further clarity of the policy framework will unlock the remaining investor confidence needed to finish the job.”

The document also sets out some of the ideas for how the partnership can work to support a new generation of apprentices in becoming part of the government’s 2030 target for 480,000 high-skilled jobs.

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