19.6.2025

Cutting Red Tape: What the World Can Learn from the UK’s Heat Pump Reforms

Heat pump installed outside a UK home as part of new regulatory reforms for low-carbon heating.

Cutting Red Tape: What the World Can Learn from the UK’s Heat Pump Reforms

On May 29, 2025, the UK government took a quietly transformative step toward accelerating low-carbon heating. With minimal fanfare but significant practical impact, it eliminated two key regulatory barriers to residential heat pump adoption:

  • The requirement for a one-meter setback from property boundaries
  • The restriction to one outdoor unit per property

These targeted removals are part of a broader shift in UK climate policy—focusing on precise, actionable hurdles rather than adding new complexity or subsidies. Thousands of urban and suburban homes previously locked out of heat pump adoption now have a clear path forward.

A Broader Strategy of Regulatory Simplification

Since May 8, 2024, homeowners in England and Wales have also been exempt from installing loft or cavity wall insulation before qualifying for the £7,500 Boiler Upgrade Scheme (BUS). The change removes a common barrier that added around £2,500 in upfront costs.

Although insulation is no longer mandatory, the government still encourages it to maximize heat pump performance and reduce heating expenses.

🔑 Six Lessons for Global Policymakers

1. Precise Regulatory Removal Unlocks Widespread Access

The UK scrapped outdated rules (like the one-meter setback) rather than creating complex exceptions. This unlocked access for thousands of homes, especially in dense urban housing.

By contrast, countries like the Netherlands implemented blanket mandates first, then backtracked to create exemptions—adding unnecessary complexity.

2. Permitting Reform as a Low-Cost Incentive

By shifting standard heat pump installations to “permitted development”, the UK eliminated the need for planning applications, fees, and delays. The result? A strong, implicit incentive without extra public funding—unlike Germany’s expensive subsidy model.

3. Simplification with Standards

The UK maintained strict noise standards (max. 42 decibels at the nearest window) even while streamlining the process. This provides regulatory certainty while preserving community support.

France’s more ambiguous, relative noise rules have created confusion by comparison.

4. Policy Consistency Builds Market Confidence

Clear, decisive reforms support the UK’s ambitious target of 600,000 annual heat pump installations by 2028. In contrast, the Netherlands sent mixed signals by softening early mandates, reducing market trust.

5. Effective Communication & Capacity-Building

The UK proactively engaged stakeholders, provided clear public guidance, and maintained strong installer certification via MCS. Other jurisdictions, like Canada, have similarly benefited from strategic communication, such as with the Greener Homes Grant.

6. Integration With Broader Climate and Housing Policy

The UK aligns heat pump reforms with Minimum Energy Efficiency Standards (MEES), ensuring a coherent decarbonisation strategy. France and Canada are following suit with bans on inefficient rentals and coordinated electrification mandates.

🌍 A Global Blueprint for Reform

The UK’s regulatory shift is a blueprint for scaling heat pump adoption worldwide. It shows that:

  • Targeted, simple changes can unlock massive impact
  • Costs can be lowered without sacrificing quality or oversight
  • Policy clarity and communication are essential for lasting success