Planning permission reform boosts UK heat pump sales

The UK is making real progress on its goal to install 600,000 heat pumps each year by 2028.

New research from energy company Aira shows a sharp rise in the number of people applying for heat pump grants through the Boiler Upgrade Scheme, with applications up 54% in the first half of 2025 compared to the same period last year.

This growth is being linked to a key policy change: the removal of planning permission requirements for most heat pump installations, which has sped up approvals and made it easier for households to switch to cleaner heating systems.

Faster installations and fewer delays

Since planning rules were updated, more homeowners have been able to install heat pumps without waiting for local authority approval.

Units placed within one metre of a property boundary no longer need planning permission, which has significantly reduced the number of customers facing delays.

“Since planning permission requirements were removed for heat pumps installed within one metre of a property boundary, the proportion of Aira customers needing planning permission has dropped from 30 to 40 percent to just 5 to 10 percent,” said Chris Collinson, CEO of Aira UK.

This change has helped unlock growth. In June 2025 alone, 3,715 applications were made to the Boiler Upgrade Scheme, compared to 2,687 in the same month the year before. That growth has continued every month this year, according to Aira, putting the country firmly on course to meet its 2028 goal.

How fast is the heat pump industry growing?

The UK’s heat pump sector is one of the fastest-growing parts of the renewable energy economy. According to the Climate Change Committee, around 100,000 heat pumps were sold across the UK in 2024, and that number is expected to rise again this year.

“The Boiler Upgrade Scheme figures for the first half of 2025 show that the growth rate in heat pump adoption is on track to meet the national target of 600,000 annual installations by 2028,” said Collinson. “Achieving this goal requires an average annual growth rate of around 50 percent, and current trends suggest this is within reach.”

Collinson also highlighted the wider impact on jobs and the economy. “These figures highlight that the heat pump industry is one of the UK’s fastest-growing and most dynamic sectors, with the potential to make a significant contribution to the Prime Minister’s manifesto pledge to create 650,000 jobs in the renewable energy sector.”

What still needs to change

While the planning reforms have helped remove one major barrier, industry voices say there is more to be done to speed up adoption and bring costs down for consumers.

“Now, we urgently need to reform taxes on electricity, to further increase heat pump adoption and cost savings for people across the UK,” said Collinson.

Because heat pumps run on electricity, they are often more expensive to operate than gas boilers, despite being more efficient. Many in the industry argue that shifting green levies away from electricity bills and onto fossil fuels would help make low-carbon heating more affordable.

With demand rising and installation rules now more streamlined, campaigners and businesses are urging the government to back the next phase of reforms to keep the UK on track for its 2028 target.