In Camden, Islington, City of London the average household spends £660 a year on heating — 31% lower than the UK average of £960. Typical homes are 82.5 m² with 3.0 rooms. The local population is around 1,595 residents (Census 2021). Switching to an air-source heat pump could save up to £264 a year for an average home after the £7,500 Boiler Upgrade Scheme grant.


Areas covered

Clerkenwell, Farringdon

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 Camden, Islington, City of London are around 20% higher than the UK average.

CategoryNational cost range Adjusted for EC1M (×1.20) Net after £7,500 BUS grant
Small flats / simple installs £ 6,000 – £ 7,000 £ 7,200 – £ 8,400 from ~£ 1,000*
2–3-bed semis / moderate upgrades £ 8,000 – £ 12,000 £ 9,600 – £ 14,400 £ 2,100 – £ 6,900
Large detached / extensive work £ 13,000 – £ 18,000 £ 15,600 – £ 21,600 £ 8,100 – £ 14,100

* 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 £5,300 for a typical 3-bedroom home after the £7,500 grant.

How much can I save on heating bills?

Roughly £264 per year for the average home at current price-cap rates.

  • £660 Average Heating Cost UK avg £960
  • 82.5 m² Median Floor Area UK avg 84.7 m²
  • 3.0 Average Rooms UK avg 4.4

Local energy snapshot

Latest tariff window: 2025Q4

Ofgem region & price cap

London · 25.63p/kWh · 46.06p/day

PV potential (south-facing)

988 kWh per kWp/year

Dwelling mix

House 2.2% Flat 94.1% Detached 1.4% Semi-detached 6.5% Terraced 68.7%

EPC certificates

780 on record

Ready to get started?

Blue Ape Renewables will handle your free quote and £7,500 grant application

Get Free Quote & Grant Help →

MCS certified • Grant application handled • 4.8★ Trustpilot • Octopus Energy partner

Also in Your Area: Solar Panel Potential

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

Without heat pump:

Solar saves ~£963/year
Payback: 12.7 years

With heat pump:

Solar saves ~£1,149/year
Payback: 10.6 years

  • Typical system 6 kW
  • Installation cost ~£12,200
  • Annual generation 5,927 kWh

See detailed solar data for EC1M →

Data from our sister site, Solar By Postcode UK

Compare nearby areas: EC1A (Islington, City of London) · EC1N (Camden, City of London) · EC1R (Camden, Islington) · EC1V (Hackney, Islington)

Heat Pump Installation & Ownership Guide

Timeline, planning rules, maintenance and what to expect
Loading the guide…

Official Heat Pump Resources & Data Sources

BUS, Ofgem, planning rules, MCS and the data behind the numbers
Loading official links…