In Newcastle upon Tyne the average household spends £682 a year on heating — 29% lower than the UK average of £960. Typical homes are 70.0 m² with 3.8 rooms. The local population is around 50,709 residents (Census 2021). Switching to an air-source heat pump could save up to £273 a year for an average home after the £7,500 Boiler Upgrade Scheme grant.


Areas covered

Heaton, Byker, Walker, Walkergate

See more in the NE area hub.

Typical air-source heat-pump installation costs range from about £6,000 at the low end to roughly £18,000 at the high end. Most homes fall somewhere between £7,000 and £15,000. These prices are before the £7,500 BUS grant (in addition, qualifying rural and island homes in Scotland may receive a further £1,500 uplift under the Home Energy Scotland scheme, for up to £9 000 of grant funding).

Installation costs in Newcastle upon Tyne are slightly below the UK average.

CategoryNational cost range Adjusted for NE6 (×0.92) Net after £7,500 BUS grant
Small flats / simple installs £ 6,000 – £ 7,000 £ 5,520 – £ 6,440 from ~£ 1,000*
2–3-bed semis / moderate upgrades £ 8,000 – £ 12,000 £ 7,360 – £ 11,040 from ~£ 1,000*
Large detached / extensive work £ 13,000 – £ 18,000 £ 11,960 – £ 16,560 £ 4,460 – £ 9,060

* Minimum net costs rarely fall below £1,000 after grant, since most installs incur at least minor extra work.

Lower end
  • Minimal groundwork or plumbing modification required
  • Well-insulated homes that only need a compact ASHP unit
Mid end
  • Moderate radiator or underfloor-heating upgrades
  • Typical pump size (8–12 kW)
Upper end
  • Large detached houses or older properties needing major pipework
  • Extensive insulation or radiator replacement
  • Multi-zone controls and bespoke system design

Heat pump FAQs

How much does a heat pump cost here?

About £2,313 for a typical 3-bedroom home after the £7,500 grant.

How much can I save on heating bills?

Roughly £273 per year for the average home at current price-cap rates.

  • £682 Average Heating Cost UK avg £960
  • 70.0 m² Median Floor Area UK avg 84.7 m²
  • 3.8 Average Rooms UK avg 4.4

Local energy snapshot

Latest tariff window: 2025Q4

Ofgem region & price cap

Northern · 25.43p/kWh · 59.86p/day

PV potential (south-facing)

932 kWh per kWp/year

Dwelling mix

House 40.1% Flat 50.6% Bungalow 4.2% Detached 2.7% Semi-detached 21.8% Terraced 72.8%

EPC certificates

16,225 on record

Ready to get started?

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Also in Your Area: Solar Panel Potential

Heat pumps increase electricity usage. Solar panels can offset your higher bills.

Without heat pump:

Solar saves ~£754/year
Payback: 13.5 years

With heat pump:

Solar saves ~£897/year
Payback: 11.4 years

  • Typical system 5 kW
  • Installation cost ~£10,200
  • Annual generation 4,660 kWh

See detailed solar data for NE6 →

Data from our sister site, Solar By Postcode UK

Compare nearby areas: NE3 (Newcastle upon Tyne, North Tyneside) · NE4 (Newcastle upon Tyne) · NE5 (Newcastle upon Tyne) · NE7 (Newcastle upon Tyne, North Tyneside) · NE8 (Gateshead) · NE9 (Gateshead, Sunderland)

Heat Pump Installation & Ownership Guide

Timeline, planning rules, maintenance and what to expect
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Official Heat Pump Resources & Data Sources

BUS, Ofgem, planning rules, MCS and the data behind the numbers
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