Heat pump for a 3 bed mid-terrace: cost and running costs
Updated 25 September 2026. Every figure on this page comes from our published model; see how accurate it is.
In government meter data a 3 bed mid-terrace uses less heat than any other kind of 3 bed house, because two of its walls are shared with warm neighbours, so it needs a smaller heat pump: about 8 kW with average insulation. Installers recorded a typical cost of £10,500 to £15,000 for a heat pump of that size under the Boiler Upgrade Scheme, with a median of £12,400. After the £7,500 grant, most pay £3,000 to £7,500.
What it costs
Size, and so price, follows how much heat the home loses. These are the typical size and the recorded installed cost for a 3 bed mid-terrace at each level of insulation. The installed cost is the whole job as installers reported it to the scheme: the heat pump, hot water cylinder, labour and VAT, before the grant. Some homes also need larger radiators, which can add to it; see radiator sizing.
| Insulation | Typical size | Median installed | Middle half of installs | Median after £7,500 grant |
|---|---|---|---|---|
| Poorly insulated | 9 kW | £12,700 | £11,000 to £15,500 | £5,200 |
| Average | 8 kW | £12,400 | £10,500 to £15,000 | £4,900 |
| Well insulated | 7 kW | £12,200 | £10,500 to £15,000 | £4,700 |
| Recently retrofitted | 5 kW | £11,500 | £10,000 to £14,000 | £4,000 |
Middle half of installs: the scheme's lower and upper quartile, scaled to each median. Homes replacing oil or LPG get £9,000 instead of £7,500 until March 2027.
What it costs to run
Running costs use the median efficiency measured across 428 heat pumps in the government's Electrification of Heat trial, at the Ofgem price cap for October to December 2026. The tariff matters more than almost anything else: see heat pump tariffs.
| Insulation | Gas boiler | Heat pump, standard rate | Heat pump tariff, 18p |
|---|---|---|---|
| Poorly insulated | £867 | £1,010 | £691 |
| Average | £781 | £835 | £571 |
| Well insulated | £664 | £647 | £442 |
| Recently retrofitted | £484 | £443 | £303 |
Where the outdoor unit goes
Most mid-terraces have no side access, so the outdoor unit usually goes in the back garden or yard, and the installer runs pipework through to the hot water cylinder. Keep it away from a neighbour's window: in England a heat pump is usually permitted development, but only within noise and siting conditions. See planning rules and heat pump noise before you choose a spot.
Compared with similar homes
| Home, average insulation | Typical size | Installed, middle half | Heat pump tariff running cost |
|---|---|---|---|
| 3 bed mid-terrace | 8 kW | £10,500 to £15,000 | £571 |
| 3 bed end-terrace | 8.5 kW | £11,000 to £15,500 | £600 |
| 3 bed semi | 9 kW | £11,000 to £15,500 | £641 |
| 3 bed detached | 9.5 kW | £11,000 to £15,500 | £682 |
For your own figures, use the heat pump calculator, or build a retrofit plan that puts insulation first and sizes the heat pump for the home after it.
Get heat pump quotes for your home
Tell us about your property and we will pass your request to up to three MCS-certified heat pump installers covering your postcode. It is free and there is no obligation to go ahead.
- MCS-certified installers only
- £7,500 grant, or £9,000 replacing oil or LPG
- Free, with no obligation
Frequently asked questions
How much does a heat pump cost for a 3 bed mid-terrace?
Typically £10,500 to £15,000 installed for an 8 kW heat pump, with a median of £12,400, from what installers recorded under the Boiler Upgrade Scheme in 2025/26. After the £7,500 grant that is £3,000 to £7,500, or £1,500 to £6,000 if you are replacing oil or LPG.
Is a heat pump cheaper to run than gas in a 3 bed mid-terrace?
On an 18p heat pump tariff, yes: about £571 a year against £781 for gas with average insulation. On a standard electricity tariff it costs about £835, a little more than gas. Both figures are energy only; gas also carries a £108 a year standing charge you save if you cap the supply.
What size heat pump does a 3 bed mid-terrace need?
About 8 kW with average insulation, and less once it is well insulated. The exact size comes from the room by room heat loss calculation an MCS installer must do. See our guide to heat pump sizes.
Data sources
- DESNZ, Boiler Upgrade Scheme statistics, August 2026, Tables A1.3A and Q1.1A.
- Energy Systems Catapult for DESNZ, Electrification of Heat trial, heat pump performance report, December 2024.
- DESNZ, National Energy Efficiency Data-Framework 2026.
- Ofgem, energy price cap, October to December 2026.