When homeowners search for boiler prices online, the results vary wildly - from £1,800 to well over £5,000 for what appears to be the same job. Most of these numbers come from installers, blogs, or anecdotal homeowner quotes.
If you want something neutral, transparent, and based on real evidence rather than guesswork, the UK Government’s Cost of Installing Heating Measures in Domestic Properties study is one of the best sources out there.
It’s not a consumer price list - and it was never meant to be - but it does give a rare, behind-the-scenes look at the true building blocks that make up the cost of heating systems in the UK.
In this article, we break down what the study found, update the figures to reflect 2025 inflation, and make clear what homeowners should - and shouldn’t - take from the data.
And once you’ve seen the bigger picture, you can dive into real-world pricing in our fully up-to-date cost guide here: https://heatable.co.uk/new-boilers/advice/new-boiler-costs-explained
Before We Begin - An Important Caveat:
The figures in this article come from the UK Government’s Cost of Installing Heating Measures in Domestic Properties (2020).
This research is a technical cost-modelling exercise, not a survey of installer quotes and not a consumer-facing price list.
We’ve adjusted the data for inflation to bring it closer to 2025 values - but it should be treated as a high-level indicator, not a retail price guarantee.
If you want live pricing for modern boiler models and real-world installations, view our consumer cost guide here: https://heatable.co.uk/new-boilers/advice/new-boiler-costs-explained
What the Government Study Looked At
The 2020 DESNZ/BEIS study modelled the complete installed costs of multiple heating technologies across representative UK home types.
Unlike installer surveys, it broke down:
material costs
labour time
commissioning
ancillary works
system dependencies
Heating systems analysed included:
oil boilers
air-to-air heat pumps
electric storage heaters and panel heaters
Although it reflects 2020 conditions, it remains one of the most transparent datasets ever published on heating installation costs.
Why We’ve Updated the Figures for 2025
The government’s study was published back in 2020, and a lot has changed since then. Prices for almost everything - labour, materials, components, even delivery - have risen sharply.
In simple terms, £1 in 2020 has the buying power of around £1.25 in 2025, thanks to roughly 25% cumulative inflation.
To make the study meaningful today, we’ve updated all the original figures to reflect 2025 money.
So, for example, a typical £2,250 combi-to-combi swap in 2020 equates to around £2,820 in 2025, before factoring in industry-specific increases like installer rates, parts shortages, or supply-chain spikes.
This keeps the numbers realistic, relevant, and directly comparable to what homeowners experience now.
Inflation-Adjusted Heating System Costs (2025 Approx.)
Based on the 2020 Government Model (not modern installer quotes)
Heating System | Typical Installed Cost (2020) | Estimated 2025 Equivalent | What This Reflects |
Gas combi boiler (combi-to-combi swap) | ~£2,250 | ~£2,820 | Most common UK installation; minimal changes needed. |
Gas regular/system boiler | ~£2,568 | ~£3,210 | Includes cylinder system work, more valves, more labour. |
Oil boiler | ~£3,560 | ~£4,450 | Off-gas-grid solution; higher equipment and flue costs. |
Biomass pellet boiler | ~£10,000 | ~£12,500 | Includes hopper, flue, storage; large installation scope. |
Air source heat pump (ASHP) | £8,000–£10,000 | £10,000–£12,500 | Includes outdoor unit, cylinder, controls, commissioning. |
Ground-source heat pump (GSHP) | £14,000+ | £17,500+ | Highest upfront cost due to drilling or excavation. |
Again, these are modelled averages, not exact prices.
For real-world consumer pricing, installation complexities, and brand recommendations, see:
👉 https://heatable.co.uk/new-boilers/advice/new-boiler-costs-explained
What the Data Really Tells Us About Different Heating Systems
Gas boilers: still the most affordable upgrade
A like-for-like combi swap is comfortably the cheapest heating installation in the UK.
It’s quick, it’s simple, and it usually doesn’t require big system changes - which keeps both labour time and material costs down.
The government’s figures line up neatly with what homeowners still see in real quotes today.
System and regular boilers: more moving parts, more cost
When a home uses a cylinder, valves, pumps, and a more complex layout, the installation naturally takes longer.
There are simply more components to work with, so it’s no surprise these jobs sit higher on the price scale.
Oil boilers: higher costs for off-grid homes
Oil systems tend to cost more upfront because the equipment itself is pricier, and the installation often involves extra considerations - such as flue upgrades, oil lines, tanks, fire-safety features, or commissioning by a specialist.
Heat pumps: the biggest investment of all
Even after adjusting the 2020 data for inflation, the picture is clear: heat pumps cost several times more to install than a gas boiler.
And that’s before you add things like radiator upgrades, insulation improvements, or electrical work, which many properties need to get the best out of a heat pump.
Where the Government Data Falls Short
While the study is incredibly useful, it does have limitations - and it’s important to understand them.
The figures don’t account for brand differences (think Worcester vs. Ideal), modern installer pricing trends, or the big post-2021 jumps in labour and material costs.
They also don’t capture regional variations, bespoke installations, smart controls, moving flues, or extra work like powerflushing and radiator upgrades.
In other words: this is a technical modelling dataset, not a real-world quote generator. It’s brilliant for understanding the landscape, but it won’t tell you exactly what your installation will cost.
How Homeowners Should Use This Information
The value of this analysis is in the context it provides.
It helps you see why a heat pump costs so much more than a gas boiler, why oil installs sit at the pricier end, and why some quotes vary so widely from job to job. It’s also a great way to sanity-check whether a quote looks broadly in the right ballpark.
But once you’ve got that high-level understanding, the next step is to look at real consumer pricing, based on actual installations happening today.
That’s where our full cost guide comes in - giving you up-to-date figures, real examples, and clear explanations tailored to homeowners.
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