In Southwark, Lambeth the average household spends £429 a year on heating — 55% lower than the UK average of £960. Typical homes are 54.0 m² with 2.8 rooms. The local population is around 73,174 residents (Census 2021). Switching to an air-source heat pump could save up to £172 a year for an average home after the £7,500 Boiler Upgrade Scheme grant.
Areas covered
South Eastern head district:, Bankside, South Bank, Lambeth, (part), Southwark, Bermondsey, (part), Vauxhall, (part), Peckham, (part)
See more in the SE 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 Southwark, Lambeth are around 20% higher than the UK average.
| Category | National cost range | Adjusted for SE1 (×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 |
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|---|---|
| Mid end |
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| Upper end |
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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 £172 per year for the average home at current price-cap rates.
- £429 Average Heating Cost UK avg £960
- 54.0 m² Median Floor Area UK avg 84.7 m²
- 2.8 Average Rooms UK avg 3
Local energy snapshot
Latest tariff window: 2025Q4
Ofgem region & price cap
London · 25.63p/kWh · 46.06p/day
PV potential (south-facing)
991 kWh per kWp/year
Dwelling mix
EPC certificates
28,419 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.
Solar saves ~£805/year
Payback: 12.7 years
Solar saves ~£960/year
Payback: 10.6 years
- Typical system 5 kW
- Installation cost ~£10,200
- Annual generation 4,955 kWh
See detailed solar data for SE1 →
Data from our sister site, Solar By Postcode UK
Compare nearby areas: SE2 (Greenwich, Bexley) · SE3 (Greenwich, Lewisham) · SE4 (Southwark, Lewisham)
Heat Pump Installation & Ownership Guide
Everything you need to know
Installation Timeline
Planning Permission Requirements
Maintenance & Ownership Costs
Official Heat Pump Resources & Data Sources
Regulatory & Grants
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Visit Official Site
Ofgem Energy Price Cap
Official cap figures, update timetable and how rates are calculated. -
Visit Official Site
Boiler Upgrade Scheme (BUS)
Grant rules, eligibility checker and application steps. -
Visit Official Site
Permitted-Development Rules for Heat Pumps
Full legal criteria (noise ≤ 42 dB(A), unit volume ≤ 1 m³, siting, listed-building caveats). -
Visit Official Site
Planning & Noise Guidance (DESNZ)
Plain-language tips on boundary distances and acoustic tests.
Cost, Savings & Best Practice
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Visit Official Site
Energy Saving Trust – Air-Source Heat Pump Advice
Running-cost calculators, sizing tips and maintenance basics. -
Download PDF
MCS Best-Practice Heat Pump Guide (PDF)
Detailed but homeowner-friendly design and installation standards. -
Search Installers
Find an MCS-Certified Installer
Search tool to verify local companies before you request quotes. -
View Study (PDF)
Delta-ee / BEIS Cost Study (2020)
Benchmark install prices we reference in our calculator.
Data Transparency & Carbon
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View Data Source
Census 2021 Postcode Resident & Household Data
Source for the local population figures on our sector pages. -
View Live Data
National Grid Carbon Intensity Live Data
Real-time CO₂ per kWh; underpins our carbon-saving estimate in the calculator. -
View Statistics
Department for Energy Security and Net Zero - Heat Pump Trends
Quarterly data on the number of heat pumps installed in the United Kingdom.