If you’re replacing your heating system in 2026, you’re probably confused. The government is pushing heat pumps hard. There’s a £7,500 grant available. But gas boilers aren’t banned yet, and plenty of installers still fit them. So which should you choose for your Teesside home?
This isn’t a sales pitch for either option. We install both, and we see homes where each makes sense. Here’s what you actually need to know about costs, practicality, and which suits your property.
The current situation
The government wants to phase out gas boilers over the next decade or so. The Boiler Upgrade Scheme offers £7,500 towards an air source heat pump to encourage uptake. Gas boilers aren’t banned, and you can still get one fitted today, but there’s a clear direction of travel.
For homeowners, this creates a decision point. Do you invest in heat pump technology now and take the grant? Or do you stick with what you know and fit a modern gas boiler that’ll last 12-15 years?
The answer depends on your property, your budget, and how well insulated your home is.
Installation costs: the honest comparison
Let’s start with what you’ll actually pay.
Gas boiler replacement typically costs:
- £1,800–£3,500 for a straightforward combi boiler swap
- £2,500–£4,500 for a system boiler with hot water cylinder
- Add more if you need significant pipework changes or radiator upgrades
If your home already has gas central heating and you’re swapping like-for-like, this is usually a 1-2 day job with minimal disruption.
Air source heat pump costs before the grant:
- £8,000–£13,000 for a typical installation
- After the £7,500 Boiler Upgrade Scheme grant: £500–£5,500 out of pocket
That sounds great until you factor in what else might be needed. Heat pumps work at lower flow temperatures than gas boilers, which often means:
- Larger radiators or additional radiators in some rooms
- Pipework modifications
- Possibly a new hot water cylinder (if you don’t already have one)
- Sometimes underfloor heating on the ground floor
These extras can add several thousand pounds. A straightforward heat pump installation exists, but it’s less common than you’d think, especially in older Teesside properties.
Ground source heat pumps cost £15,000–£25,000 or more. They’re more efficient than air source, but the upfront cost and disruption (digging up your garden or drilling boreholes) make them impractical for most homes. We rarely recommend them unless you’ve got significant land and a specific reason to go this route.
Running costs: efficiency vs fuel prices
Heat pumps are more efficient than gas boilers. A modern gas boiler is about 90% efficient. A heat pump has a coefficient of performance (COP) of 3–4, meaning it produces 3-4 units of heat for every unit of electricity consumed.
Sounds like a clear win, except electricity costs roughly three times as much per unit as gas. In practice, this means:
- Heat pump running costs: similar to or slightly lower than gas
- Variables include how well insulated your home is, how cold it gets, and what your heat pump’s actual COP is (which varies with outdoor temperature)
In a well-insulated home, heat pumps typically save £200–£400 per year compared to gas. In a poorly insulated home, you might see little difference or even higher bills if the system is working hard.
Don’t expect dramatic savings. The main benefit is lower carbon emissions, not radically cheaper heating.
Which homes suit heat pumps
Heat pumps work best in:
- Well-insulated homes: modern builds, or older properties that have been retrofitted with cavity wall insulation, loft insulation, and decent double glazing
- Homes with space outside: you need room for the outdoor unit, ideally not right next to a neighbour’s bedroom window (they’re not loud, but they do hum)
- Properties with underfloor heating or oversized radiators: these allow the system to run at lower temperatures, which is where heat pumps are most efficient
- Homes without mains gas: if you’re currently on oil, LPG, or electric heating, a heat pump is often a better option than sticking with expensive fuels
Teesside has plenty of newer builds and well-maintained semis where heat pumps make sense. If your home is already warm with minimal drafts, it’s worth investigating.
Which homes suit a new gas boiler
Gas boilers remain the practical choice for:
- Older properties with poor insulation: Victorian terraces with solid walls, single-glazed windows, and limited space for retrofitting insulation
- Homes where a heat pump would require major modifications: if you’d need to replace every radiator, rip up floors for underfloor heating, and rewire half the house, the cost advantage of the grant disappears
- Properties with existing gas central heating: if your system is already set up and working, a modern combi or system boiler is often the most cost-effective replacement
- Homeowners who want a straightforward swap: less disruption, lower upfront cost, and a heating system that behaves the way you’re used to
Many Teesside homes, especially older ones, fall into this category. If your property isn’t well insulated, a heat pump will struggle to keep you warm on cold January days, and your running costs will creep up.
For context, as Gas Safe registered engineers (reg. 972035) we install boilers across Teesside every week. In properties where the existing system is gas and the insulation is average, a new boiler is almost always the sensible option.
The grant situation
The £7,500 Boiler Upgrade Scheme grant is available for air source and ground source heat pumps, but not for gas boilers. This narrows the cost gap significantly.
To qualify:
- Your property must have an Energy Performance Certificate (EPC) with no outstanding loft or cavity wall insulation recommendations
- You must use an MCS-certified installer
- The grant is applied at point of purchase, so you don’t need to pay upfront and claim back
The scheme is designed to make heat pumps competitive with gas boilers on price, and in some cases it succeeds. But if your home needs additional insulation or radiator upgrades to make a heat pump viable, the total cost still ends up higher than a straightforward boiler replacement.
Practical considerations
Beyond cost, there are a few practicalities worth thinking about.
Noise: air source heat pumps have an outdoor unit that produces a low hum, similar to a fridge. It’s not loud, but if your neighbour’s bedroom window is a few feet away, it might cause friction. Modern units are quieter than older ones, but it’s still worth considering placement.
Space: you need somewhere outside to mount the unit. Most Teesside gardens have space, but tight terraced properties with small yards might struggle.
Radiator sizing: heat pumps work best with larger radiators. If your current radiators are undersized, you’ll need to upgrade them to get the heat output you need. See: Radiators.
Hot water: heat pumps typically heat a hot water cylinder, which means you’ll need space inside for one if you don’t already have it. Combi boilers produce hot water on demand, which some homeowners prefer.
Planning permission: heat pumps are usually permitted development, but there are rules about placement, noise, and proximity to boundaries. Check with your local authority if you’re unsure.
Our honest take
We install both gas boilers and heat pumps, and we’ve fitted systems in every type of Teesside property. Here’s what we see in practice.
For well-insulated homes, especially newer builds or properties that have been retrofitted properly, heat pumps make sense. The grant covers most of the cost difference, running costs are similar or lower, and you’re future-proofing against eventual gas boiler phase-outs.
For older homes with poor insulation, gas boilers remain the practical choice. A heat pump won’t heat the property effectively without major upgrades, and the total cost ends up far higher than a straightforward boiler replacement.
For homes in the middle, it depends. If you’re planning to insulate anyway, consider a heat pump. If you’re not, a modern condensing boiler will give you reliable heat for the next 12-15 years at a lower upfront cost.
It’s not one-size-fits-all. The right answer depends on your property, not on government policy or what’s currently fashionable.
If you’re upgrading your central heating, it’s also worth checking whether your system needs a power flush before installation. Sludge and debris in the pipework can reduce efficiency, whether you’re fitting a boiler or a heat pump.
For more on choosing the right heating system for your home, see: Choosing the Right Boiler.
Final thoughts
Heat pumps are a good technology, but they’re not magic. They work brilliantly in the right property and struggle in the wrong one. Gas boilers are being phased out eventually, but they’re still the practical choice for many Teesside homes today. If you’re not sure which suits your property, the best thing you can do is get an honest assessment from someone who installs both. Get in touch and we’ll talk you through what makes sense for your home.