Can Flats and Apartments Have Heat Pumps? The 2026 Guide

Around 5 million households in the UK live in flats or maisonettes. Air source heat pumps — which require an outdoor unit — face genuine challenges in this context: shared external walls, leasehold restrictions on alterations, communal roof access, and limited outdoor space. But solutions exist, and the picture for flat-dwellers is more varied than a simple "heat pumps don't work for flats" would suggest. Here is an honest assessment of the options.

The core challenge: the outdoor unit

An air source heat pump requires an outdoor unit — typically the size of a large suitcase — that draws heat from outside air. In a house with a garden, this is straightforward to site. In a flat, the options are: a balcony (if there is one and it is large enough), a communal external wall or courtyard (if the landlord or management company agrees), a rooftop installation (for top-floor flats in some buildings), or a dedicated ground-level siting arrangement negotiated with the building management.

Leaseholders in England, Wales, and Scotland generally need the landlord's or management company's consent for alterations that affect the building structure or communal areas. This is not insurmountable — many management companies will agree to heat pump installations, particularly in buildings with decarbonisation commitments — but it adds a layer of negotiation and paperwork that houses do not face.

BUS grant eligibility for flats

Flats are eligible for the BUS grant, but with a condition: the installation must be for the individual flat, not a communal system. A ground source or air source heat pump serving only one flat's heating and hot water qualifies; a communal heat pump serving multiple flats does not qualify under BUS (it would fall under a different commercial scheme). For individual flat installations, all the normal BUS eligibility rules apply.

Compact and balcony heat pump units

Several manufacturers have developed compact air source heat pump units specifically designed for small spaces, including balcony mounting. Mitsubishi's Ecodan City Multi and similar "small footprint" units have been designed for urban flat contexts. These units are typically 5–8 kW output, suited to the smaller heating demands of most flats, and are designed to operate within the 42 dB(A) noise limit at typical balcony distances from neighbouring properties.

Before specifying a balcony unit, the installer must check: the structural capacity of the balcony (heat pump units weigh 80–150 kg), the orientation and clearance around the unit, noise compliance in the specific configuration, and whether the balcony is a private or communal area under the lease terms.

Communal heat networks: the better solution for most flats

For blocks of flats where individual heat pump installations are impractical, communal heat networks (also called district heating or heat networks) offer a more practical path to low-carbon heating. A single large heat pump in the building's plant room serves all flats via a shared hot water distribution network. Residents pay for heat consumption via a heat interface unit (HIU) in their flat, metered in kWh.

Heat network installations in social housing and mixed-tenure blocks are increasingly funded through the Social Housing Decarbonisation Fund (SHDF), which provides capital grants to housing associations and councils. Private leaseholders in buildings exploring this route would typically need the freeholder or management company to lead the project, often in partnership with an energy services company (ESCO).

What to do if you rent

Tenants cannot apply for the BUS grant (it requires property ownership) and cannot install a heat pump without landlord consent. The government's Minimum Energy Efficiency Standards (MEES) require private rented properties to achieve EPC band E by law, with aspirations for EPC C by 2030 in the private rented sector. Tenants in poorly heated flats can encourage landlords to improve heating systems by referencing these standards, but the financial driver must ultimately come from the landlord side — either through grant funding if the landlord owns multiple qualifying properties, or through ECO4 if the tenant is on qualifying benefits.