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Air Source Heat Pump Grant
Category: Advice
Date: July 2026

£9,000 GOVERNMENT GRANT FOR AIR SOURCE HEAT PUMPS

If you own a home in one of Wiltshire's beautiful villages and rely on an oil fired heating system, there's some fantastic news.

The Government has announced that eligible households can now receive up to £9,000 towards replacing an oil boiler with an air source heat pump through the Boiler Upgrade Scheme. The increased grant is designed to help more rural homeowners move to cleaner, more energy-efficient heating while reducing the upfront installation costs. The increased funding is available from 21 July 2026 for eligible off gas grid homes.

Why This Matters in Wiltshire

Many of the villages where I regularly help people buy and sell homes aren't connected to the mains gas network. Instead, they rely on heating oil, making this announcement particularly relevant across much of rural Wiltshire.

Villages including Pewsey, Upavon, Urchfont, Oare, Ramsbury, Aldbourne, Lockeridge, Manton and many others have a significant number of oil heated properties. For homeowners considering upgrading their heating system, this grant could make a substantial difference.

Not only could it reduce the installation cost, but it may also help protect households from fluctuating oil prices while improving the long-term energy efficiency of their home.

What Is an Air Source Heat Pump?

An air source heat pump works by extracting heat from the outside air, even in cold weather, and using it to heat your home and provide hot water.

They're becoming increasingly popular because they:

  • Produce lower carbon emissions than oil boilers.
  • Can reduce reliance on fossil fuels.
  • Offer more stable long-term heating costs.
  • Improve your home's environmental credentials.
  • May help improve the appeal of your property to future buyers.

While every property is different, modern air source heat pumps can work successfully in many rural homes, particularly when combined with good insulation.

Who Is Eligible?

The enhanced £9,000 grant is aimed at eligible properties in England and Wales that:

  • Are off the mains gas network.
  • Currently use heating oil or LPG.
  • Are replacing that existing system with an eligible air source or ground source heat pump.
  • Meet the Boiler Upgrade Scheme requirements.

Applications aren't made directly by homeowners. Instead, an approved MCS-certified installer applies for the funding on your behalf, and the grant is deducted from the installation cost.

Could It Add Value to Your Home?

Energy efficiency is becoming an increasingly important factor for buyers.

Many purchasers now ask about EPC ratings, running costs and sustainable heating systems before making an offer. While no upgrade can guarantee an increase in value, investing in a modern, energy-efficient heating system could make your property more attractive, particularly as buyers become more conscious of future energy costs.

For anyone planning to sell over the next few years, it's certainly worth exploring whether this grant could help fund improvements that benefit both your lifestyle and your home's marketability.

Where Can I Find More Information?

The Government has published full details of the enhanced Boiler Upgrade Scheme, including eligibility criteria and how the process works.

You can read the official announcement here:

Government announcement – £9,000 heat pump grant for eligible oil-heated homes

Thinking of Selling Your Rural Home?

One of the things I love most about selling homes across Wiltshire's villages is helping buyers appreciate everything that comes with country living.

If you're considering selling an oil heated home, or you're wondering whether improvements such as an air source heat pump could make your property more appealing, I'd be delighted to have a chat.

Every home is different, and understanding how today's buyers view energy efficiency can help you make informed decisions before you come to market.

Contact me, Kim, on 01380 864111