Types of Heat Pumps: Which Heat Pump Is Right for Your Home?

There are several types of heat pumps, and the best choice depends on your property, available space, existing heating system and budget. Some heat pumps use outside air, while others extract heat from the ground or water.

This guide explains the main types of domestic heat pumps, their advantages and disadvantages, and the type of property each system may suit. You can also use our Heating System Recommender to compare the options for your own home.

Independent homeowner guide

Heat pumps can reduce dependence on oil and gas, but the best system depends on the property, available space, existing heating, budget and how long the homeowner expects to remain in the house.

This guide explains what the main types do, what installation may look like, and the important advantages, disadvantages and quality features to compare.

Important: A heat pump collects renewable heat from the air, ground or water around the property, but it still uses purchased electricity. It reduces direct reliance on oil or gas, but electricity prices, maintenance and finance costs still matter.

Air-to-Air Heat Pumps

Air-to-air heat pumps extract heat from outside air but deliver it directly into your home as warm air rather than heating water.

They can be relatively simple to install and many systems can reverse their operation to provide air conditioning in summer. However, a separate solution is normally required for domestic hot water.

It collects heat from outdoor air and sends warm air directly into rooms through indoor fan units. Many systems can also cool rooms in summer.

It does not normally heat water for taps, showers or conventional radiators, so a separate hot-water system is usually needed.

Best suited to: Open-plan homes and individual rooms

Usually providesHeating and cooling

Main limitationUsually no hot water

Advantages

• Usually quick and relatively inexpensive to install.
• Can provide summer cooling.
• No wet central-heating pipework required.
• Useful for extensions and garden offices.

Things to consider

• Indoor fan units remain visible.
• Fan noise and air movement may not suit everyone.
• Heat may not spread evenly through many closed rooms.
• A separate water-heating system is normally required.

Air-to-Water Heat Pumps

An air-to-water heat pump extracts heat from the outside air and uses it to heat water for your central-heating system. It can supply radiators or underfloor heating and can also provide domestic hot water.

Air-to-water systems are one of the most common heat-pump choices for replacing a gas or oil boiler because they can work with a conventional wet heating system.

It collects heat from outdoor air and transfers it into water for radiators, underfloor heating and a hot-water cylinder.

This is often the most practical whole-house alternative to a gas, oil or LPG boiler, although radiator, cylinder or pipework upgrades may be needed.

Best suited toMost ordinary houses

Usually providesHeating and hot water

Main limitationOutdoor unit and possible upgrades

Add an image here
Suggested image: outdoor unit, cylinder and upgraded radiator.

Advantages

• Can replace a conventional boiler.
• Usually cheaper than ground-source heating.
• Works well with correctly sized radiators or underfloor heating.
• Can later work with solar panels and smart tariffs.

Things to consider

• May need a larger hot-water cylinder.
• Some radiators may need replacing.
• The outdoor unit makes some noise.
• Good design and low flow temperatures are important.

Ground-Source Heat Pumps

Ground-source heat pumps extract naturally occurring heat from the ground. Because underground temperatures remain more stable than outside air temperatures, these systems can operate efficiently throughout the year.

Ground heat can be collected using either a horizontal ground loop or one or more vertical boreholes.

Horizontal Ground-Loop Heat Pumps

Horizontal ground loops use pipes buried relatively close to the surface over a large area of land. They avoid the expense of deep drilling but require considerably more available ground.

It collects heat from pipes buried in shallow trenches across a suitable area of land, then transfers that heat into the home’s heating and hot-water system.

Ground temperatures are steadier than outdoor air temperatures, which can improve winter efficiency.

Best suited toHomes with substantial land

Usually providesHeating and hot water

Main limitationExcavation and land requirement

Suggested image: trenches before the garden is restored.

Advantages

• Stable source temperature.
• No large fan unit beside the house.
• Ground loops can have a long life.
• Excavation may sometimes be arranged separately.

Things to consider

• Requires a large suitable area.
• Gardens and paths may be disturbed.
• Higher installation cost than air source.
• Ground conditions need professional assessment.

Borehole Ground-Source Heat Pumps

Where garden space is limited, vertical boreholes can provide the ground collector instead. Boreholes require specialist drilling and can therefore make the initial installation considerably more expensive.

However, they require relatively little surface area and the underground infrastructure can have a very long working life.

It collects heat through one or more deep vertical boreholes. This gives the benefits of ground-source heating without needing a large horizontal field.

It can be highly efficient, but specialist drilling makes it one of the most expensive domestic options.

Best suited toLimited land with drilling access

Usually providesHeating and hot water

Main limitationHigh drilling cost

Add an image here
Suggested image: drilling rig and finished garden.

Advantages

• Stable underground temperatures.
• Uses little surface land.
• Ground infrastructure may last a long time.
• Can provide strong seasonal efficiency.

Things to consider

• Drilling is expensive and specialist.
• Access and geology affect suitability.
• The technically best system may still be a poor financial choice.
• Very long theoretical loan periods may not be available.

Water-Source Heat Pumps

Water-source heat pumps extract heat from a suitable lake, river, pond or other water source. Water temperatures can remain relatively stable, which can allow these systems to operate efficiently.

They are much less widely applicable because the property needs suitable access to water and the necessary permissions.

It collects heat from a suitable lake, river, pond or underground water source and transfers it into the property’s heating system.

It can be efficient, but relatively few homes have the access, permissions and suitable conditions required.

Best suited toHomes beside suitable water

Usually providesHeating and hot water

Main limitationRare site suitability

Add an image here
Suggested image: collector pipes and indoor equipment.

Advantages

• Water can provide a stable heat source.
• No air-source fan unit is required.
• Can offer high efficiency on the right site.
• May suit rural homes with private water access.

Things to consider

• Permissions and water rights may be involved.
• Filters and source equipment may need maintenance.
• Flooding, debris and seasonal conditions matter.
• Specialist quotations can vary considerably.

Comparisons table

Heat-pump type	Installation	Space required	Cooling	Existing radiators
Air-to-water	Moderate	Outdoor unit	Usually no	Often
Air-to-air	Relatively simple	Indoor + outdoor units	Yes	No
Ground-source – horizontal	Major groundworks	Large garden	Possible	Often
Ground-source – borehole	Specialist drilling	Small surface area	Possible	Often
Water-source	Specialist	Suitable water source	Possible	Often

What makes one installation better than another?

Brand names alone do not guarantee a good result. Survey quality, system design, controls, installation and commissioning can be just as important as the heat-pump unit.

Basic installation

• Standard controls.
• Fewer monitoring features.
• Potentially more audible operation.
• Shorter warranty or limited support.

Good mid-range installation

• Weather compensation.
• Variable output.
• Good cold-weather performance.
• Energy monitoring.
• Good installer support.

Premium features

• Very quiet operation.
• Advanced smart controls.
• Solar, battery and tariff integration.
• Longer warranties.
• Higher-quality cylinders and pumps.

Questions to ask before accepting a quotation

Question	Why it matters
Was a room-by-room heat-loss calculation completed?	Rough estimates can lead to poor sizing and higher costs.
What efficiency is expected at the proposed flow temperature?	Headline figures may not match real operation.
Which radiators, pipework or cylinders need replacing?	This explains differences between quotations.
What are the indoor and outdoor noise levels?	Noise affects placement, neighbours and comfort.
What warranty covers the unit, labour and other equipment?	An equipment warranty may not cover installation faults.
Can performance be monitored after installation?	Monitoring can reveal poor settings or unexpected energy use.

Could a heat pump add value to a property?

A modern low-carbon heating system, lower running costs and a better EPC rating may make a home more attractive to some buyers. Any increase depends on the property, location, local market, installation quality and buyer preferences.

It is safer to treat a possible value increase as an additional benefit rather than relying on it to repay the installation cost.

Can the home be changed back to a boiler later?

In many homes another boiler could technically be installed later. Radiators and some internal pipework may remain useful, but the cost depends on what was removed and whether a suitable gas, oil or LPG supply remains.

Ground loops and boreholes would normally remain in place even if the indoor heat-pump unit was replaced.

General guide only: Installation costs, performance, permissions, grant eligibility and property-value effects must be checked for the individual home.

Shared Ground Loops and Community Heat Pumps

Ground-source infrastructure can also be shared between multiple properties. A shared ground loop can connect several homes to a communal borehole field rather than requiring every homeowner to install a separate borehole.

Each property can retain its own heat pump and heating controls while sharing the expensive underground infrastructure.

Read our Community Heat Pumps and Shared Ground Loops guide to learn how these systems work and how eligible properties may receive support through the Boiler Upgrade Scheme.

Which type of heat pump should I choose?

The best heat pump depends on your home’s heating requirement, existing heating system, available outdoor space and what you want from the system.

Start with our Home Heat Loss Calculator to estimate your property’s heating requirement. You can then enter your requirements into our Heating System Recommender to compare suitable options.