If you are planning a heat pump installation, you may be wondering whether the Warm Homes Loan Scheme could also help with the cost of underfloor heating.
Underfloor heating is not currently listed as an eligible measure in its own right. However, there may be circumstances where parts of a water underfloor heating installation are accepted as necessary ancillary works within a wider heat pump project.
Here is what homeowners need to know before building the scheme into their plans.
Information checked on 17 July 2026. The scheme is still moving towards its public launch, so participating lenders, available products and eligibility details may change.
What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme, or WHLS, is a government-supported, lender-led initiative intended to make finance for low-carbon home improvements more affordable.
Homeowners will not apply to the government directly. Instead, participating banks, building societies and other authorised lenders will offer their own finance products, subject to their usual creditworthiness and affordability checks.
The scheme is designed to support eligible low-carbon improvements such as heat pumps, solar panels and battery storage. It forms part of the wider Warm Homes Plan, which is focused on upgrading homes, reducing exposure to volatile energy costs and supporting the move towards cleaner heating.
As of July 2026, lenders are still applying to participate in the first phase. The Scheme Rules indicate that loans are expected to become available to the public from September 2026, although this timetable is not guaranteed.
Who can apply and what home upgrades are eligible?
The scheme is primarily intended for people who can afford to borrow and repay finance but who may be put off by the upfront cost of low-carbon home improvements.
Eligible borrower groups currently include:
- Owner-occupiers of existing domestic properties
- Private rented sector landlords borrowing on a personal lending basis
There is no income-based eligibility threshold set at scheme level. However, every lender will carry out its own affordability and credit checks and may introduce additional requirements for its products.
Participating lenders will also be free to decide which eligible customer groups and technologies they support. A lender joining the scheme does not necessarily have to offer finance for every eligible measure.
Eligible low-carbon heating and energy technologies
The current Scheme Rules list the following eligible technologies:
- Air-to-water source heat pumps
- Ground source heat pumps, including water source heat pumps and systems using shared ground loops
- Biomass boilers in qualifying rural circumstances
- Connections to an existing or planned low-carbon heat network
- Roof-mounted solar photovoltaic panels
- Electrical battery storage, either installed separately or alongside solar panels
- Domestic wind turbines and micro-hydroelectric systems
Air-to-air heat pumps are referenced in the Scheme Rules but are not currently eligible for WHLS applications. They are expected to be considered once the relevant standards and certification requirements are in place.
Is underfloor heating covered by the Warm Homes Loan Scheme?
Underfloor heating is not currently eligible as a standalone measure.
The Scheme Rules do, however, allow finance to cover ancillary capital costs that are needed to install an eligible measure and enable it to operate effectively. For a heat pump, the government gives examples including necessary improvements to radiators, pipework and water tanks.
Underfloor heating is not specifically included in that list. It would therefore be inaccurate to suggest that every water underfloor heating system installed alongside a heat pump will qualify.
There may be projects where an installer considers underfloor heating pipework or related components to be a necessary part of the overall heat pump system design. Whether those costs are accepted will depend on the installation quote, the lender’s product and the scheme requirements in force at the time.
Before committing to a project, ask your installer to provide an itemised quotation and confirm the position directly with the participating lender.
Why water underfloor heating can work well with a heat pump
Although it is not currently an eligible standalone measure, water underfloor heating can be a strong match for an air-to-water or ground source heat pump.
A water underfloor heating system circulates warm water through pipework beneath the floor. Because the whole floor acts as a large heat emitter, the system can provide comfortable room temperatures while using a lower water flow temperature than many traditional radiator arrangements.
Lower flow temperatures can help a heat pump operate more efficiently. Actual performance will still depend on factors such as the property’s heat loss, floor construction, pipe spacing, floor covering and control settings, so the system must be designed around the individual building.
This combination may be particularly suitable for:
- New extensions
- Whole-house renovations
- Ground-floor heating upgrades
- New-build properties
- Open-plan kitchens and living areas
- Homes designed around low-temperature heating
For retrofit projects where floor height is limited, explore our low-profile water underfloor heating systems. For suitable well-insulated spaces and traditional floor build-ups, you can also browse our standard-output water underfloor heating kits.
What should homeowners check before applying?
Because public-facing WHLS products are not yet available, the scheme is something to monitor rather than finance that homeowners can rely on immediately.
Before planning a project around a Warm Homes Loan Scheme product, check:
- Whether the lender is officially participating in the scheme
- Which eligible technologies that lender is willing to finance
- Whether the lender supports owner-occupiers, landlords or both
- The interest rate, loan term, fees and total amount repayable
- Whether the repayments are affordable for your household
- Whether the heat pump and installer meet the required MCS certification standards
- Whether you qualify for the Boiler Upgrade Scheme or another grant available in your part of the UK
- Whether combined WHLS and grant funding has received final approval
- Whether any underfloor heating components will be accepted as necessary ancillary works
- Which parts of the project will need to be paid for separately
One of the most important questions is whether the underfloor heating system will be treated as an eligible ancillary element of the heat pump installation. The current rules mention pipework, radiators and water tanks, but they do not specifically mention underfloor heating.
Always obtain written confirmation from both the installer and lender before assuming that any underfloor heating costs will be included.
As with any home-improvement finance, consider the total cost of borrowing rather than the monthly repayment alone. Only take out a loan when the repayments are affordable and the product is suitable for your circumstances.
Can the Warm Homes Loan Scheme be used with the Boiler Upgrade Scheme?
The WHLS has been designed to complement schemes such as the Boiler Upgrade Scheme.
Under the current rules, an eligible homeowner in England or Wales could potentially use a WHLS loan to cover qualifying heat pump installation costs above the value of a Boiler Upgrade Scheme grant.
However, the Scheme Rules state that this remains subject to final approval of combined funding arrangements. Homeowners should not assume that the two forms of support can be combined until this has been confirmed by the installer and participating lender.
Will the scheme pay for insulation?
The current Scheme Rules state that insulation will not be funded as part of a heat pump installation.
That does not make insulation unimportant. Reducing unnecessary heat loss can affect the heating demand of a property and may influence the size and design of both the heat pump and its heat emitters.
Underfloor heating insulation can also help direct heat into the room rather than allowing it to travel into the structure beneath the system. Browse our range of underfloor heating insulation and fixing systems when planning a suitable floor build-up.
Any insulation, structural work or other costs that fall outside the WHLS rules will need to be funded separately.
Choosing the right underfloor heating system for your heat pump
At The Underfloor Heating Store, we supply water underfloor heating systems for extensions, renovations, new builds and larger whole-home projects.
Depending on the property and floor construction, a heat pump-led project may require:
- Water underfloor heating systems
- Low-profile systems for retrofit projects
- Standard-output water underfloor heating kits
- Underfloor heating manifolds
- Pumps and heat pump control packs
- Water underfloor heating thermostats and controls
- Insulation and fixing systems
The correct specification should be based on room-by-room heat-loss calculations rather than choosing a system solely by floor area. This is particularly important when the underfloor heating will be connected to a low-temperature heat source.
Planning a larger heating project? Request a free underfloor heating quote and our team will help you compare suitable systems and components.
Final takeaway
The Warm Homes Loan Scheme could become a useful finance option for homeowners investing in heat pumps, solar panels, battery storage and other eligible low-carbon technologies.
Underfloor heating is not currently covered as a standalone measure. It may be considered within a wider heat pump installation only where the relevant costs are accepted as necessary ancillary works.
Until participating lenders publish their products, homeowners should avoid treating that possibility as guaranteed. Ask for an itemised installation quote and obtain confirmation from both the installer and lender before relying on the scheme.
From a system-design perspective, a properly specified water underfloor heating system can still be an effective partner for a heat pump, offering even room temperatures while making good use of lower-temperature water.
Frequently asked questions
Can the Warm Homes Loan Scheme fund underfloor heating?
Not as a standalone measure. Some underfloor heating costs may potentially be accepted within an eligible heat pump installation where they are considered necessary ancillary works, but this must be confirmed by the participating lender.
Can I use the Warm Homes Loan Scheme with the Boiler Upgrade Scheme?
Potentially. The current Scheme Rules are intended to allow a WHLS loan to cover eligible installation costs above the value of a Boiler Upgrade Scheme grant. However, combined funding remains subject to final approval and lender confirmation.
Do heat pumps work well with underfloor heating?
They can work very well together. Water underfloor heating uses a large surface area to distribute heat, allowing it to operate at lower flow temperatures. Performance depends on correct heat-loss calculations, system design, floor construction and controls.
Will the Warm Homes Loan Scheme pay for insulation?
No. The current rules state that insulation will not be funded as part of a heat pump installation. Insulation may still be important to the overall performance of the property and heating system, but it will need to be funded separately.
When will Warm Homes Loan Scheme products become available?
The current Scheme Rules indicate an expected public launch in September 2026. This is an indicative date and may change while lenders complete the application and product-approval process.
Where can I check the latest Warm Homes Loan Scheme rules?
Read the latest Warm Homes Loan Scheme information on GOV.UK before making financial or installation decisions.
