Homeowners told of eco property update can boost the value by £25,000

Property experts say the renewable heating systems are becoming particularly attractive to environmentally conscious buyers.

Senior property buyer at Property Saviour Saddat Abid said: “With respect to market value, the installation of a heat pump could translate into a hike in the range of about five to 10 per cent, contingent on the type of property and its location.”

There are some grants for heat pumps

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For a typical £250,000 property, installing a heat pump could add between £12,500 and £25,000 to its value.

According to ScottishPower and WWF, the device can increase a home’s value by three per cent and seven per cent.

While the average cost of installing an air source heat pump stands at £12,744, according to experts, the potential return on investment could make it a worthwhile consideration for homeowners.

The demand for eco-friendly features has notably increased in recent years. Of course, no update is guaranteed to add value, so carefully consider any updates before going ahead.

The property expert said: “I’ve truly observed [increased demand] over the last three years. A heat pump can turn a property into an especially sought-after acquisition for contemporary buyers as they’ll save on utility costs while keeping their carbon footprint to a minimum.”

The government’s Boiler Upgrade Scheme offers substantial support for homeowners considering the switch to heat pumps. Grants of up to £7,500 are now available towards installation costs.

The increased grant support has already shown an impact, with air source heat pump installations growing by 57 per cent between October 2023 and March 2024.

This financial assistance has made the technology more accessible across the country, with 81 per cent of English and Welsh councils seeing an increase in installations.

The scheme has been particularly successful in areas like Rotherham, where installations increased by 407 per cent following the grant increase. Beyond the financial benefits, heat pumps add significant appeal to properties looking towards future regulations.

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The update is appealing to many potential buyers

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Saddat said: “Buyers are now more conscious of these future changes and look at properties with heat pumps as less hassle in the future and consider them a long-term investment.

“Other advantages are the low-maintenance nature of the heat pumps, which are more reliable than the conventional boilers, bringing surety to the potential buyers.”

These features make properties with heat pumps particularly attractive in today’s market.

For homeowners planning to install a heat pump, insurance considerations should not be overlooked.