The short answer for Birmingham: an air source heat pump costs about £12,900 installed on the national Boiler Upgrade Scheme median, so roughly £5,400 after the £7,500 grant. At October–December 2026 West Midlands prices it would cost about £630–£790 a year to heat a typical home, against about £750 on gas.
Birmingham has had fewer Boiler Upgrade Scheme installations per household than any other city we cover, so heat pumps are still unusual on most streets. That is a reason to be choosy about the installer and the design, not a reason the house won't suit one.
What a heat pump costs in Birmingham after the grant
Heat pump prices aren't published by city, and installers price each home from a survey, so the fairest benchmark is the national median under the Boiler Upgrade Scheme.
| Air source heat pump | |
|---|---|
| Typical installed price under BUS (median, April–June 2026) | £12,900 |
| Boiler Upgrade Scheme grant | −£7,500 |
| What you would pay | about £5,400 |
Median installed cost of an air-to-water heat pump under the Boiler Upgrade Scheme, April–June 2026 (lower quartile £11,128, upper quartile £15,627): DESNZ BUS Statistics: July 2026, published 27 August 2026. This is the middle figure across all installations — a small, well-insulated house can come in well under it; a large, older house needing new radiators and a cylinder can come in well over it.
Birmingham homes had 386 Boiler Upgrade Scheme grants paid between May 2022 and June 2026 — about 0.9 per 1,000 households. That is the lowest rate of the 6 cities we cover (highest: Bristol, 3.4), so check an installer's local track record.
Running costs in Birmingham: heat pump vs gas
| Heating | Energy bought a year | Unit rate | Annual running cost |
|---|---|---|---|
| Gas boiler (90% efficient) | 9,500 kWh gas | 7.90p/kWh | £750 |
| Heat pump, efficiency 2.78 (trial median) | 3,080 kWh electricity | 25.60p/kWh | £790 |
| Heat pump, efficiency 3.05 (trial upper quartile) | 2,800 kWh electricity | 25.60p/kWh | £720 |
| Heat pump, efficiency 3.5 (low-temperature design target) | 2,440 kWh electricity | 25.60p/kWh | £630 |
Same 8,550 kWh of heat in every row: Ofgem's typical medium gas use of 9,500 kWh a year, delivered by a 90%-efficient boiler. Unit rates: West Midlands direct-debit price cap, 1 October to 31 December 2026. Standing charges excluded — if you remove the gas meter entirely you also stop paying the gas standing charge (29.71p a day, about £110 a year here). Heat pump efficiencies: 2.78 is the median measured seasonal performance across 428 homes in the government's Electrification of Heat trial and 3.05 its upper quartile; 3.5 is the kind of figure a system designed to run at 45°C or below is designed to achieve, not a measured average.
On West Midlands prices the heat pump's running cost depends almost entirely on its efficiency: at the trial median it is roughly level with gas; at 3.5 it is clearly cheaper, removing the gas meter saves the standing charge too, and a heat-pump or time-of-use tariff widens the gap. The design flow temperature in your quote is the best clue to which end you'll be at.
Birmingham homes and heat pumps
Census 2021 counted 423,455 households in Birmingham: 35.6% semi-detached, 27.8% terraced, 11.2% detached and 25.4% flats. 74.2% heat by mains gas alone, 11.7% by electricity alone and 0.6% through a district or communal heat network (England and Wales: 73.8%, 8.5% and 0.9%).
Semi-detached houses are the most common home in Birmingham, and they are usually the easiest fit: a side passage or rear garden gives space for the outdoor unit away from the neighbours' windows, and an existing hot water cylinder cupboard can often take the new cylinder. On terraces the unit usually goes in the rear yard, close to the neighbours on both sides, so the MCS 020(a) noise check becomes the deciding factor in where it can sit.
About one in eight Birmingham households heats with electricity alone — many of them flats with storage heaters. Replacing direct electric heating with a heat pump is eligible for the £7,500 grant, and the running-cost saving is much larger than against gas, but flats need the freeholder's agreement and have tighter permitted development limits (one unit of up to 0.6 cubic metres).
Planning: where the outdoor unit can go
In England, an air source heat pump on a house is normally permitted development — no planning application — under rules relaxed on 29 May 2025. The old rule that the unit had to be at least 1 metre from the boundary has gone; the outdoor unit can be up to 1.5 cubic metres (0.6 on a block of flats); a detached house can have two units and other homes one; and the installation must meet the MCS 020(a) noise standard, which your installer checks. It can't go on a pitched roof, and listed buildings always need consent. In a conservation area or World Heritage Site the unit can't go on a wall or roof that fronts a road, or be nearer to a road bounding the property than the house itself — so it normally goes at the side or rear.
Birmingham has 29 conservation areas, and in eleven of them — including Moseley, Bournville Village, Moor Pool and Selly Park — Article 4 directions mean even minor alterations need permission (council guidance). Heat pumps aren't named; if you're in one of those areas, ask the council, and plan to site the unit at the rear.
Do you qualify for the £7,500 grant?
- £7,500 off an air source or ground source heat pump (£2,500 for air-to-air). From 21 July 2026 to 31 March 2027, an air source or ground source heat pump replacing oil or LPG heating in a home with no mains gas connection gets £9,000 instead (not air-to-air).
- England and Wales only. Owner-occupiers and private landlords can apply, including for second homes and business premises; most new-build homes and social housing can't.
- The heat pump must replace fossil-fuel heating (gas, oil, LPG, coal) or direct electric heating. Since 28 April 2026 an EPC is no longer mandatory — if the home doesn't have a valid one, the installer provides other evidence.
- The installer applies, not you. An MCS-certified installer requests the voucher and takes it off your price; Ofgem contacts you to confirm. It is a discount on the price, not a free installation — you pay the balance.
- There is no income test and no benefits requirement.
Source: GOV.UK, Apply for the Boiler Upgrade Scheme (updated 16 Sep 2026); DESNZ notice of grant values (effective 21 Jul 2026); Ofgem BUS guidance for property owners v5.1 (2 Jul 2026). Full detail: Boiler Upgrade Scheme guide.
Getting a quote in Birmingham
Tell us about your home
Postcode, property type and how you'd pay. Two minutes.
We pass it to one installer
If an accredited (MCS-certified) installer covers your area, we'll pass your enquiry to them, and only them. They can arrange a home survey, including a room-by-room heat-loss calculation.
Judge the quote
Check it against the figures on this page. If it's out of range, you can say no. No obligation at any stage.
How your enquiry is handled
- One installer introduction, fulfilling your request. If an accredited (MCS-certified) installer covers your area, we'll pass your enquiry to them, and only them — not a list of companies.
- No obligation, at any stage. You can say no at any point, including after the survey or the quote, and owe nothing.
- It costs you nothing. An installer may pay Great British Energy a referral fee if you go ahead, and that fee does not change your price.
- We are an independent guide, not an installer. Great British Energy Guide doesn't install anything and isn't the government body of a similar name. Your consent is recorded with the enquiry, as set out in our privacy policy.
Get your heat pump quote in Birmingham
One MCS-certified heat pump installer who covers your postcode. They apply for the Boiler Upgrade Scheme on your behalf if you're eligible. Nothing is shared until you submit.
What the quote must contain — heat-loss calculation, flow temperature, named equipment, noise assessment and the grant as a line — is set out on the heat pump quotes page.
Questions from Birmingham homeowners
Is a heat pump cheaper to run than gas in Birmingham?
At October–December 2026 West Midlands prices a heat pump at the trial's median efficiency costs about the same as gas; a well-designed low-temperature system is cheaper, and removing the gas meter also ends the gas standing charge. The table above works it through.
Will a heat pump work in a Birmingham terrace?
Often, yes. The practical questions are where the outdoor unit goes — usually the rear yard — whether it meets the noise standard at the neighbours' windows, and where the hot water cylinder fits. A good installer answers all three at the survey.
Do I need planning permission?
Usually not for a house, since the 2025 changes removed the 1-metre boundary rule. You do if the house is listed, and in a conservation area the unit can't face the road.
Can I get the £7,500 grant as a landlord?
Yes. Private landlords are eligible for the Boiler Upgrade Scheme on properties they own in England and Wales. Social housing isn't.
Other areas
- Heat pumps in Sheffield
- Heat pumps in Bristol
- Heat pumps in Newcastle
- Heat pumps in Doncaster
- Heat pumps in Nottingham
- Oil to heat pump: Cornwall
- Oil to heat pump: Somerset
- Oil to heat pump: Fens & Peterborough
- Oil to heat pump: Northumberland
- Oil to heat pump: Carmarthenshire & Pembrokeshire
Thinking about panels too? Solar panels in Birmingham.
Sources
- GOV.UK, Apply for the Boiler Upgrade Scheme (updated 16 September 2026); DESNZ notice of grant categories and values (effective 21 July 2026); Ofgem, BUS guidance for property owners v5.1 (2 July 2026).
- DESNZ, Boiler Upgrade Scheme statistics: July 2026 (27 August 2026) — median installed cost 2026 Q2; redemptions paid by local authority, May 2022 to June 2026.
- Ofgem, Changes to energy price cap between 1 October and 31 December 2026 (26 August 2026) and regional unit rates and standing charges; electricity at 0% VAT from 1 October 2026 to 31 March 2027 (HMRC).
- Ofgem, Typical Domestic Consumption Values decision (27 May 2026): medium gas 9,500 kWh, electricity 2,500 kWh, from 1 July 2026.
- Energy Systems Catapult for DESNZ, Electrification of Heat demonstration project, summary report (December 2024): median measured air source heat pump seasonal performance (SPFH4) 2.78, interquartile range 2.55–3.05, 428 homes.
- Office for National Statistics, Census 2021 tables TS044 (accommodation type), TS046 (central heating), TS050 (bedrooms) and TS054 (tenure), local authority level, via Nomis.
- General Permitted Development (England) Order 2015, Schedule 2 Part 14 Class G, as amended by SI 2025/560 from 29 May 2025.
- Birmingham City Council, conservation areas and Article 4 directions; Switch Together Birmingham (checked 23 September 2026).