Heat Pump Grants for New Builds: What Financial Support Is Available in the UK?

If you're buying a new build home in 2026, you won't be able to claim the £7,500 Boiler Upgrade Scheme grant for your heat pump. The BUS is strictly for existing properties replacing fossil fuel heating. But that doesn't mean you're left without support. The Future Homes Standard, developer incentives, and several alternative funding routes mean heat pumps in new builds are becoming standard, and the cost is increasingly absorbed before you even pick up the keys.

Why Doesn't the Boiler Upgrade Scheme Cover New Builds?

This catches a lot of people off guard. The Boiler Upgrade Scheme (BUS) was designed to help homeowners in existing properties ditch their gas or oil boilers. It was never intended for new construction.

The logic is straightforward. New builds are regulated by building standards, which now require low-carbon heating as standard. The government's view is that developers should be fitting heat pumps anyway, so there's no need for a taxpayer-funded grant on top. Whether you agree with that reasoning or not, the rule is firm: if your property has never been occupied before, you can't claim the BUS grant.

This applies whether you're a self-builder, a housing association, or someone buying off-plan from a major housebuilder. The property must have had a previous heating system that's being replaced.

The Future Homes Standard: Heat Pumps Are Now the Default

The Future Homes Standard came into force in 2025, and its effects are shaping every new housing development being built across England right now in 2026. Put simply, new homes must produce at least 75% fewer carbon emissions than the old 2013 Part L standards allowed.

In practice, this means gas boilers are essentially banned in new builds. Developers are fitting air source heat pumps as the primary heating solution in the vast majority of cases. Some are using ground source systems or heat networks, but air source units dominate because they're quicker and cheaper to install at scale.

So if you're buying a new build in 2026, there's a very good chance your home will already come with a heat pump. You don't need a grant because the developer is required to install low-carbon heating. The cost is baked into the purchase price of the home.

What Financial Support IS Available for Heat Pumps in New Builds?

While the BUS is off the table, there are other routes worth knowing about.

Developer absorption of costs. Major housebuilders like Barratt, Persimmon, and Taylor Wimpey have been scaling up heat pump installations since 2024. At volume, they're negotiating unit costs well below what a homeowner would pay for a retrofit. A heat pump that might cost £10,000-£12,000 fitted in an existing home could cost the developer £4,000-£6,000 per unit when ordered in bulk. That saving gets passed through in the house price, though it's rarely itemised.

Help to Build (for self-builders). If you're building your own home, the Help to Build equity loan scheme can cover up to 20% of your total build costs (40% in London). This isn't a heat pump grant specifically, but it reduces your overall costs, and the heat pump installation is part of the total build cost the loan covers.

Home Upgrade Grant (HUG2). This is aimed at low-income households in off-gas-grid areas, and it can cover energy efficiency improvements including heat pumps. It's not typically for brand new builds, but if you're in a very specific situation involving a property conversion or community housing project, it's worth checking eligibility with your local authority.

Scottish and Welsh schemes. If you're in Scotland, Home Energy Scotland offers interest-free loans up to £7,500 for renewable heating systems, and these can sometimes apply to self-build projects. In Wales, the Warm Homes Nest scheme focuses on existing homes, but the Welsh Government has separate planning requirements pushing heat pumps in new developments.

What About Self-Builders? Can You Get a Heat Pump Grant for a Self-Build?

This is where things get frustrating. Self-builders are in a grey area that the current grant system doesn't handle well.

You can't claim the BUS grant because your home is new. You're building from scratch, not replacing an existing boiler. And most local authority grants are aimed at retrofit, not new construction.

Honestly, the best financial advantage for self-builders is the VAT reclaim. New builds qualify for zero-rated VAT on construction materials and services, which means the heat pump itself and the installation labour should be VAT-free. On a £10,000 heat pump installation, that's a saving of £2,000 compared to what a retrofit homeowner would pay at the standard 5% reduced VAT rate (or £1,667 compared to the 20% rate on some components).

Some self-builders also benefit from the fact that they're designing the property around the heat pump from day one. No costly retrofitting of underfloor heating, no ripping out radiators, no upgrading insulation after the fact. A well-designed self-build with proper insulation and appropriately sized radiators or underfloor loops will run more efficiently and cost less to heat than a retrofit installation in a draughty 1970s semi.

The £7,500 BUS Grant: Who CAN Claim It?

Since the BUS doesn't apply to new builds, let's be clear about who it does cover, because it's still one of the most generous grants available in the UK.

The Boiler Upgrade Scheme offers £7,500 towards an air source heat pump or ground source heat pump in an existing property in England or Wales. Your home must have a functioning fossil fuel heating system (or have had one recently), and the installation must be carried out by an MCS certified installer.

The grant runs until March 2028, and as of 2026, uptake has increased significantly since the grant was raised from £5,000 to £7,500 in late 2023. If you already own an existing property and you're thinking about switching, this is worth acting on sooner rather than later. Budget allocations are reviewed annually, and there's no guarantee the grant will be extended beyond 2028.

To claim, you don't apply directly. Your MCS certified installer applies on your behalf, and the £7,500 is deducted from the quoted price before you pay. It's about as straightforward as government schemes get.

"I'm Worried the Developer Has Fitted a Cheap Heat Pump That Won't Last"

This is probably the biggest concern new build buyers have about heat pumps, and it's a fair one.

Some developers have a track record of fitting the cheapest possible systems to tick a regulatory box. You might end up with a correctly sized, well-installed heat pump from a reputable manufacturer. Or you might get a budget unit with poor controls and an undersized hot water cylinder.

Here's what to check before you complete on a new build purchase. Ask the developer which make and model of heat pump they've fitted. Check whether it's from a recognised manufacturer like Daikin, Mitsubishi, Vaillant, Samsung, or Grant. Ask for the MCS certificate, which confirms the system was designed and installed to proper standards. And check the warranty period, because most quality heat pumps come with at least a 5-year manufacturer warranty, often extendable to 7 or 10 years.

If the developer can't or won't answer these questions, that tells you something. A good housebuilder will be proud of the system they've installed and happy to share the details.

Also worth knowing: new builds come with a 2-year builder warranty covering defects, and a 10-year structural warranty (usually NHBC or similar). The heat pump and its installation are covered under the 2-year defect period, so if anything goes wrong early on, the developer is responsible for putting it right.

Frequently Asked Questions

Can I get the £7,500 heat pump grant on a new build?

No. The Boiler Upgrade Scheme is only available for existing properties that are replacing a fossil fuel heating system. New builds, including self-builds, are not eligible. The government expects developers to install heat pumps as standard under the Future Homes Standard.

Do all new builds have to have heat pumps in 2026?

In England, the Future Homes Standard requires new homes to produce at least 75% fewer carbon emissions than the old 2013 standards. In practice, this means almost all new builds are fitted with heat pumps, though some may use heat networks or other low-carbon alternatives. Scotland and Wales have similar requirements under their own building regulations.

What grants can self-builders get for heat pumps?

Self-builders can't claim the BUS grant, but they benefit from zero-rated VAT on new build construction, which saves around £2,000 on a typical heat pump installation compared to retrofit. The Help to Build equity loan scheme can also reduce overall build costs, with the heat pump included in the total project cost.

Are new build heat pumps any good or are they cheap ones?

It depends on the developer. Reputable housebuilders are fitting quality units from manufacturers like Daikin, Vaillant, and Mitsubishi. Always ask for the make, model, and MCS certificate before completing your purchase. Your 2-year new build defect warranty covers the installation if problems arise.

Will heat pump grants be available for new builds in the future?

There are no current plans to extend the BUS grant to new builds. The government's position is that the Future Homes Standard already requires low-carbon heating, so grants aren't needed. This could change, but as of 2026 there's nothing on the horizon.

Find an MCS Certified Installer Near You

Whether you're buying an existing home and want to claim the £7,500 BUS grant, or you're a self-builder planning a heat pump from scratch, getting the right installer matters. Use our directory at heatpumpinstallerdirectory.co.uk to find a local MCS certified heat pump installer who can advise on the best system for your property and handle any grant applications on your behalf.