Heat pumps for landlords in Manchester
Manchester at a glance
- Council: Manchester City Council, net zero target 2038
- Population: 568,996
- Postcode areas: M
- Nearby: Salford, Trafford, Stockport, Tameside, Oldham, Rochdale, Bury
What makes Manchester different
Manchester has a higher private rented share and a higher electric-only share than the two East Midlands cities in this guide. The 2021 Census records 69,403 privately rented households out of 214,730, which is 32.3%. Owner-occupiers are 37.2% and social tenants 29.5%, so owner-occupation is barely ahead of private renting.
The housing stock is also unusual. Purpose-built flats are 28.1% of households (about 60,300) and converted or shared houses another 3.9% (about 8,400). Terraced homes are 28.0% and semi-detached 31.9%. Detached houses are only 5.4%, which matters for planning: a house that is not detached may have one heat pump unit under the England permitted development rules, against two on a detached house.
These shares cover all households, not only rented ones. Treat them as the backdrop for your own address.
The electric-only share changes the sums
Mains gas heats 67.0% of Manchester homes, about 143,900 households. That is lower than Nottingham (72.8%) or Leicester (74.0%). Electric-only heating is 18.3%, about 39,300 households, and district heating is 1.1%. Oil is 0.1% and 2.3% report no central heating.
That electric-only figure is the local story. A landlord replacing gas with a heat pump trades 7.97p gas for 26.32p electricity and may only break even for the tenant. A landlord replacing panel heaters or old storage heaters starts from 26.32p for every unit of heat, so a heat pump’s efficiency feeds straight through to the bill. Compare the options on storage heaters vs heat pumps.
Worked example (modelled, not a real project)
Inputs (all assumptions except prices): a one-bedroom flat using 5,000kWh of heat a year, direct electric panel heaters at 100% efficiency, an air-to-air heat pump at an assumed seasonal efficiency of 3.0 or 3.5, and the Ofgem cap electricity rate of 26.32p per kWh (1 October to 31 December 2026). Standing charges are left out because the tenant pays them either way. Hot water is excluded: air-to-air units heat rooms, not a cylinder.
| Heating | Electricity needed | Cost a year |
|---|---|---|
| Panel heaters, 100% | 5,000kWh | about £1,316 |
| Air-to-air, efficiency 3.0 | 1,667kWh | about £439 |
| Air-to-air, efficiency 3.5 | 1,429kWh | about £376 |
On these assumptions the tenant’s space heating bill falls by roughly £880 to £940 a year. The Boiler Upgrade Scheme pays £2,500 towards air-to-air where it replaces existing heating, or £7,500 for an air-to-water system with radiators and a cylinder. Your flat’s real demand and quotes will differ. See air-to-air heat pumps for rental properties and heat pumps for flats.
The Greater Manchester Warm Homes grant
Manchester does not appear on the GOV.UK list of Warm Homes: Local Grant authorities (updated 2 July 2026). Greater Manchester runs the grant through the Greater Manchester Combined Authority instead, as the GM Wide Scheme, and its rules differ from the national guidance in ways that matter to a landlord.
| GMCA rule | What it means for a landlord |
|---|---|
| Landlord must support the Good Landlord Charter | Sign up before you apply, or you are not eligible |
| First property: 100% up to £15,000 insulation plus £15,000 low carbon heat | Up to £30,000 on one home |
| Second and later properties: 50% up to £7,500 each for insulation and heat | Up to £15,000, with you paying the other half |
| Rented homes EPC D or E; F or G only with a registered exemption | A home below E must be exempt first |
| Gas and oil boilers not eligible | Heat pumps, high heat retention storage heaters or shared ground loops instead |
| Measures follow the Retrofit Assessment order toward Band C | Insulation may come before the heat pump |
The tenant’s household must also qualify, for example through an eligible postcode, means-tested benefits or a gross household income below £36,000. Applications go through the GMCA Retrofit Portal. The national landlord conditions, including the declaration that rent will not rise because of the funded work, are on the Warm Homes Local Grant page. Remember that the Boiler Upgrade Scheme pays one grant per property, so pick the route before applying.
Licensing and HMO planning in Manchester
Manchester City Council runs selective licensing in specific areas, not citywide. From 24 February 2025 it added 1,863 properties in six wards:
- Cheetham: flats above shops and Esmond/Avondale (405 properties)
- Crumpsall: Enver Road (147)
- Harpurhey: Whiteway Street (116)
- Longsight: Heathcote/Sanby Road and Northmoor Road (679)
- Miles Platting and Newton Heath: Droylsden Road and Scotland Street (373)
- Moss Side: Viscount Street and Heald Grove (143)
The council says 3,550 properties have been fully licensed from 2017 and its compliance inspections found more than 1,700 hazards. A licence comes with conditions, so a heating change should be planned with the licence in mind. Ask the council whether new works affect your conditions.
The council states it does not currently run additional HMO licensing, though mandatory licensing applies to HMOs with five or more people in two or more households. Separately, Manchester’s Article 4 direction means turning a family home into a small HMO for three to six sharers needs planning permission. The HMO landlord guide covers heating for shared houses.
EPC C, the 2038 target and heat networks
Today the legal minimum is EPC E, with a £3,500 cost cap including VAT. The planned rule is EPC C by 1 October 2030 with a £10,000 cap, and the regulations are not yet laid. See EPC C 2030 and your heating choice.
Manchester City Council’s Climate change action plan 2025 to 2030 keeps the council’s goal of becoming zero carbon by 2038. It is a council plan, not a duty on you. Greater Manchester also took part in the government’s heat network zoning pilot, and 1.1% of Manchester households are already on district heating. If your building is on a communal or district system, ask the operator before replacing anything.
When a heat pump is the wrong answer here
- A gas-heated terrace with poor insulation: fabric first, or the tenant may pay more.
- A flat where the freeholder refuses consent or there is no lawful spot for a unit.
- An EPC F or G home you hoped to fund through GMCA without a registered exemption.
- A building already served by a communal heat network.
To test your own property, try the landlord heat pump calculator or send an enquiry. Relevant independent firms contact you, with no charge to you and no obligation.
Landlord questions in Manchester
Can Manchester landlords get the Warm Homes: Local Grant?
Yes, through the Greater Manchester Combined Authority's GM Wide Scheme, not a city council allocation. GMCA says landlords must be supporters of the Greater Manchester Good Landlord Charter. A landlord's first property can get up to £15,000 for insulation and up to £15,000 for low carbon heating; later properties get 50% of the cost up to £7,500 for each of the two, £15,000 in total. Gas and oil boilers are not funded.
Do I need a selective licence for my Manchester rental?
Only if the address is inside a designated area. From 24 February 2025 Manchester City Council added 1,863 properties in parts of Cheetham, Crumpsall, Harpurhey, Longsight, Miles Platting and Newton Heath, and Moss Side to its selective licensing schemes. Check the postcode with the council before you plan works. The council says it does not currently run additional HMO licensing.
Is a heat pump worth it in an electric-heated Manchester flat?
Often more than in a gas-heated house. At 26.32p per kWh, direct electric heat costs the full unit price, while a heat pump divides that by its efficiency. The £2,500 Boiler Upgrade Scheme grant covers air-to-air units that replace existing heating, and £7,500 covers air-to-water. Freeholder consent and the 0.6 cubic metre planning limit on a block of flats still apply.
Do I need planning permission to let a Manchester house to sharers?
Usually yes. Manchester has an Article 4 direction, so changing a single-household home into a small HMO for three to six people sharing needs planning permission. Settle the use first, because the heating design for a shared house differs from a family let.
Sources
- ONS Census 2021 via Nomis: TS054 tenure, TS044 accommodation type, TS046 central heating, read 8 October 2026
- DESNZ, Heat networks zoning pilot, read 8 October 2026
- GOV.UK, Warm Homes: Local Grant successful local authorities, read 8 October 2026
Council licensing, planning and grant details were read on the council's own pages on the dates logged for this guide. Check with Manchester City Council before you rely on them.
Sources
- ONS Census 2021 via Nomis: TS054 tenure, TS044 accommodation type, TS046 central heating (read 8 October 2026)
- GOV.UK, Apply for the Boiler Upgrade Scheme: check if you are eligible (read 8 October 2026)
- DESNZ/MHCLG, Improving the energy performance of privately rented homes: 2025 update - government response (published 21 January 2026) (read 8 October 2026)
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