If you’re planning a home upgrade in 2026, one of the biggest and most confusing decisions is this:
Should you install a heat pump – or stick with a modern gas boiler?
With energy prices remaining volatile, government targets accelerating low-carbon heating, and more buyers checking EPC ratings before making offers, this decision now affects:
- your monthly bills
- your property value
- and your long-term running costs
This in-depth UK guide compares heat pumps vs gas boilers honestly and practically – so you can understand which option is actually cheaper in the long run for UK homes.
This article is written for homeowners using Compare Home Upgrades to plan real upgrades, not just research.
If you are actively exploring home improvement options, you can start from the main platform here:
👉 https://comparehomeupgrades.co.uk/
Why this comparison matters more in 2026 than ever
Five years ago, gas boilers were the default choice in most UK homes.
In 2026, that is no longer true.
Several things have changed:
- electricity and gas pricing has shifted
- the UK’s decarbonisation targets are influencing housing policy
- lenders and buyers increasingly consider EPC ratings
- grants and incentives have made heat pumps more accessible
But the most important question remains very simple:
Which one costs you less over the lifetime of the system?
What does “cheaper in the long run” really mean?
When comparing heating systems properly, you must look at:
- installation cost
- running cost
- maintenance cost
- lifespan
- impact on resale value
- and future regulatory risk
Only comparing the upfront price gives the wrong answer.
Quick summary (for busy homeowners)
Before we go deep, here is the high-level answer:
- Gas boilers are cheaper to install
- Heat pumps are usually cheaper to run (in the right property)
- Heat pumps typically last longer
- Heat pumps improve future resale positioning
- Gas boilers still suit many existing homes better today
Now let’s break it down properly.
How heat pumps work (simple explanation)
A heat pump does not create heat.
It moves heat from the outside air or ground into your home.
Even when it feels cold outside, there is still usable heat energy.
This is why heat pumps are described as renewable heating systems.
How gas boilers work
A gas boiler burns natural gas to heat water which is circulated through your radiators and taps.
They are:
- compact
- familiar
- fast to install
- and very well understood by installers
Heat pump systems – cost, performance and real savings
5
Typical installation cost in the UK (2026)
For most UK homes installing an air source heat pump:
- £8,000 – £13,000 installed
- sometimes lower after available grants and incentives
Costs vary mainly by:
- property size
- existing heating system
- radiator and pipework upgrades
- insulation level
Typical running cost
This depends heavily on:
- electricity tariff
- insulation quality
- and heat pump efficiency (COP / SCOP)
For a well-prepared average UK home:
- annual running cost typically ranges between
£700 – £1,200
Why heat pumps can be cheaper to run
Heat pumps are highly efficient.
For every unit of electricity used, they often deliver:
- 3 to 4 units of heat
This means they can outperform gas in properly upgraded homes.
Maintenance cost
Heat pumps:
- have fewer moving parts
- do not involve combustion
- do not produce flue gases
Annual servicing is usually:
- slightly cheaper or similar to boiler servicing
Lifespan
Most modern heat pumps last:
- 18 to 25 years
This is a major long-term advantage.
The hidden cost most people miss
Many UK homes require:
- insulation upgrades
- radiator upgrades
- or system balancing
These are not optional.
They are what allow heat pumps to operate efficiently.
This is where many homeowners underestimate total project cost.
You can explore available heat pump upgrade options and suitability here:
👉 https://comparehomeupgrades.co.uk/heat-pumps/
Gas boilers – cost, performance and long-term reality
Typical installation cost in the UK (2026)
For most homes replacing a gas boiler:
- £2,000 – £4,000 installed
This includes:
- boiler unit
- basic installation
- and system connection
Typical running cost
With current average tariffs, many UK homes see:
- annual running cost between
£900 – £1,400
This depends on:
- home size
- usage pattern
- insulation quality
Maintenance cost
Gas boilers:
- require annual safety servicing
- have combustion components
- and more wear-prone parts
Maintenance costs are:
- predictable
- but unavoidable
Lifespan
Most gas boilers last:
- 10 to 15 years
Some fail earlier depending on usage and water quality.
The future uncertainty factor
While gas boilers are still fully legal in 2026:
- policy direction is clearly shifting
- replacement rules may tighten over time
- future resale perception may change
This does not make gas boilers a bad decision – but it does affect long-term planning.
Installation cost comparison
| System | Typical installed cost |
|---|---|
| Heat pump | £8,000 – £13,000 |
| Gas boiler | £2,000 – £4,000 |
Gas boilers clearly win on upfront cost.
Running cost comparison
| System | Typical annual cost |
|---|---|
| Heat pump | £700 – £1,200 |
| Gas boiler | £900 – £1,400 |
Heat pumps can be cheaper to run – but only when the home is prepared correctly.
Maintenance and servicing comparison
| System | Typical annual servicing |
|---|---|
| Heat pump | Low to moderate |
| Gas boiler | Moderate and mandatory |
Lifespan comparison
| System | Typical lifespan |
|---|---|
| Heat pump | 18 – 25 years |
| Gas boiler | 10 – 15 years |
This alone strongly affects lifetime cost.
Total lifetime cost comparison (realistic UK example)
Let’s compare a realistic 20-year ownership period.
Heat pump example
- installation: £10,500
- maintenance (20 yrs): £2,000
- running cost (avg £950 × 20): £19,000
Total ≈ £31,500
Gas boiler example (with one replacement)
- first boiler: £3,200
- replacement after 12 years: £3,500
- maintenance (20 yrs): £3,000
- running cost (avg £1,150 × 20): £23,000
Total ≈ £32,700
In this realistic scenario:
👉 The heat pump is slightly cheaper over the full period.
But…
This only holds if the property supports efficient operation.
Property type makes or breaks the result
This is the most important section of the entire article.
Heat pumps perform best in:
- well insulated homes
- newer properties
- homes with upgraded radiators or underfloor heating
- properties with consistent heating demand
Gas boilers perform best in:
- older housing stock
- poorly insulated homes
- properties with limited upgrade budgets
- homes with small radiators and high temperature systems
The radiator and insulation issue (why many heat pump installs disappoint)
Heat pumps operate at lower flow temperatures.
If your home has:
- old single-panel radiators
- limited wall or loft insulation
- air leakage
Your heat pump must work harder.
This:
- increases electricity usage
- and destroys the expected savings
This is not a heat pump problem.
It is a preparation problem.
Which is cheaper in the long run for UK homes?
The honest answer is:
Heat pumps are cheaper in the long run when:
- the property is properly insulated
- radiators are correctly sized
- installation is professionally designed
- electricity tariffs are optimised
Gas boilers are cheaper in the long run when:
- the property is poorly insulated
- upgrades are not financially practical
- the homeowner plans short-term ownership
- capital budget is limited
What about resale value and buyer demand?
In 2026, buyer behaviour is changing.
More buyers now ask:
- what is the EPC rating?
- what is the running cost?
- is the heating system future-proof?
A well-installed heat pump:
- improves EPC performance
- supports green mortgage criteria
- increases long-term buyer confidence
This does not mean gas boilers reduce value today.
But heat pumps increasingly support stronger positioning.
Energy price risk and future stability
Another major factor is exposure to energy price shifts.
Gas prices remain sensitive to:
- international supply
- geopolitical instability
Electricity pricing is also volatile, but:
- long-term grid decarbonisation
- and renewable expansion
are expected to stabilise electricity supply over time.
This creates a structural advantage for heat pumps over the long run.
Noise, space and practical considerations
Heat pumps:
- require an outdoor unit
- need internal cylinder space
- and must be positioned carefully
Gas boilers:
- fit easily into cupboards
- require flue positioning
- and take up less space
Practical constraints can determine the decision as much as money.
Installation time and disruption
Heat pump installations usually involve:
- system design surveys
- possible radiator upgrades
- internal cylinder installation
Typical timeline:
- several days to a full week
Gas boiler replacement:
- usually 1 to 2 days
If speed and minimal disruption matter, boilers still win.
The smartest strategy for many UK homes in 2026
For many homeowners, the most sensible approach is not an immediate switch.
A staged strategy works well:
Step 1 – improve insulation and efficiency
Step 2 – upgrade radiators where needed
Step 3 – plan heat pump installation later
This avoids:
- forced upgrades
- inefficient installations
- and disappointing performance.
How to choose correctly for your own home
You should always evaluate:
- insulation level
- radiator size and type
- available outdoor space
- internal cylinder space
- and your expected ownership period
Generic advice is dangerous in heating decisions.
Compare real quotes before deciding
The difference between a good and bad installation often determines whether a heat pump becomes:
- cheaper than gas
- or more expensive than expected
Before committing to either option, compare real installers and pricing.
You can compare trusted local heating and heat pump installers here:
👉 https://comparehomeupgrades.co.uk/compare-now/
This allows you to:
- understand real upgrade costs
- assess property suitability
- and accurately project long-term savings.
Final verdict – which is cheaper in the long run?
The correct answer is:
Heat pumps can be cheaper in the long run for UK homes – but only when the property is prepared correctly.
If your home is already:
- reasonably modern
- well insulated
- and upgrade-ready
a heat pump will usually win over a 20-year horizon.
If your home is:
- older
- poorly insulated
- and budget constrained
a modern gas boiler remains the cheaper and more practical option today.
The most important takeaway
The question is not:
“Are heat pumps cheaper than gas boilers?”
The real question is:
“Is my home suitable for a heat pump today?”
By answering that first – and comparing real installation quotes – you protect both your comfort and your finances.
Start exploring heat pump options here:
👉 https://comparehomeupgrades.co.uk/heat-pumps/
And compare trusted local installers before you decide:
👉 https://comparehomeupgrades.co.uk/compare-now/