Heat pumps for landlords in Newcastle upon Tyne

What the 2021 Census says about renting in Newcastle

Newcastle upon Tyne has 122,797 households, and 27,978 rent privately. That is 22.8%, against 49.2% who own and 27.3% who rent socially. Private renting is a large part of the city, so most streets have rented homes.

The stock is unusual for an English city. Flats are 24.8% of homes and a further 6.0% are in converted buildings, so around 3 in 10 households sit in a building with more than one dwelling. Terraced homes are 23.6%, semi-detached 34.6% and detached just 9.5%. Outdoor space for a unit is often limited.

Heating is 74.8% mains gas. Electric only heating is 10.1% of households, a high share, and 2.3% use district heating. Oil is 0.1% and 1.2% have no central heating. These are figures for all tenures, so use them as a guide to the city, not to your own block.

Flats: the main Tyneside question

A flat usually has little heat demand and no outdoor space of its own, so the first question is where an outdoor unit can go. In England, a heat pump compressor on a block of flats is limited to 0.6 cubic metres under permitted development, against 1.5 cubic metres on a house, and the noise limit is 37.0 dB(A). A wall bracket above a shared walkway or a neighbour’s window can fail that test.

Ownership matters too. If you own a leasehold flat, the freeholder or management company may need to agree to an external unit. The heat pumps for flats guide covers the options in more detail.

An air-to-air heat pump costs less and qualifies for £2,500 under the Boiler Upgrade Scheme in residential property, as long as it replaces existing heating. It heats rooms by warm air, not through radiators, and it does not make hot water. Whether tenants will accept that is a practical question. Read air to air heat pumps for rental properties before you choose.

Terraces and solid walls

Terraced homes are 23.6% of Newcastle’s stock, and older terraces often have solid walls, which lose heat faster than cavity walls. A heat pump in a leaky solid-wall terrace needs a larger system and may need radiators swapped, which adds cost. In many of these homes, loft, floor and draught work should come first. Heating the house better only pays if less heat escapes.

Space is the other limit. A terrace may have a small yard but no side access, and a terraced house gets one unit under permitted development. The Energy Saving Trust puts a typical air source heat pump at around £12,000 before the grant. The £7,500 BUS grant covers air source or ground source systems in a property you rent out, with the work installed within 120 days of the application by an MCS installer.

Which grant covers a Newcastle rental

The Boiler Upgrade Scheme pays £7,500 for an air-to-water or ground source heat pump. The extra £1,500, making £9,000, applies only where oil or LPG heating is replaced and there is no mains gas connection, which is rare in Newcastle given oil is only 0.1% of households. The scheme must replace a fossil fuel system such as oil, gas, electric or LPG. Electric heaters count, which matters in a city where 10.1% of households heat with electricity only.

Route	What you get	Notes for a landlord
Boiler Upgrade Scheme, air or ground source	£7,500	One grant per property, no hybrids
Boiler Upgrade Scheme, air-to-air	£2,500	Must replace existing heating
Warm Homes: Local Grant	First property fully funded, 50% from the second	Lower-income tenant, EPC D to G, no rent rise because of the work
Warm Homes Loan Scheme	Lender loan, up to £20,000 for an air source heat pump	A loan, not a grant

Newcastle upon Tyne is listed in its own row on the GOV.UK list of successful local authorities for Warm Homes: Local Grant, with no partner authorities named. Several other North East authorities, among them Gateshead, North Tyneside and Sunderland, have separate rows, so a property across the Tyne is dealt with by a different council. EPC F and G rentals need a registered exemption first.

Licensing and the council’s plan

Newcastle City Council runs selective licensing in named areas and additional licensing for HMOs. Its earlier schemes covered Cowgate, East End Terrace, West End Terraces, parts of Benwell and Scotswood Village from April 2020, with Byker Old Town and Greater High Cross added in October 2021. On 14 October 2024 Cabinet agreed to designate selective and additional licensing areas for a five-year term. Additional licensing covers privately rented homes with three or more people in two or more households sharing basic amenities. Check your address and current dates with the council.

The council’s climate plan is the Net Zero Newcastle 2030 Action Plan, and the city has a net zero target year of 2030.

Heat networks and planning

Newcastle has a heat network, operated by Bring Energy in partnership with the council. It serves the Newcastle Helix site, with the Discovery Museum connected and seven college buildings joining, and the council describes plans to decarbonise it. Nothing on the council pages says homes across the city can connect, so treat it as a local feature, not an option. The guide to heat networks and ambient loops covers the build to rent case.

On planning, the Article 4 directions in Newcastle include three on change of use from a house to an HMO, and householder restrictions in the Northumberland Gardens and Summerhill Conservation Areas. Conservation area limits on heat pumps are stricter, so check the council’s Article 4 map for your street.

When a heat pump is not the right answer

A heat pump is the wrong first move in a solid-wall terrace with no insulation, in a flat with no external space, or where electricity at 26.32p per kWh against gas at 7.97p would leave the tenant paying more. The current minimum is EPC E. EPC C by 1 October 2030 is planned, with regulations not yet made, so do not treat it as law today. Use the heat pump landlord calculator for your own numbers, or send an enquiry and relevant independent firms contact you, with no charge and no obligation.