Lots of cynicism about heat pumps and condensing boilers on here, surprise, surprise, much of it anecdotal, ill-informed or simply urban myth.
I got an air source heat pump fitted in our house in Canada when the original system started to show signs of corrosion after 30 years. The system is very similar to a standard aircon system, ie well proven system compts, the main difference being that a heat pump is bidirectional. It all sounds terribly mysterious but it's basically just a heat exchanger that can operate in either direction. Essentially during the summer, the outside heat exchanger of the heat pump is hotter than the outside world (and thus cools the house). In the winter, it is cooler than the outside world and consequently heats up the house. We retained a gas-fired furnace as a backup and for when the ambient was below 0C but in practice we hardly ever needed it (Vancouver weather is like the UK). Many people simply have an electric heater to boost the system in the winter but in our case the house wiring would have been a problem. Didn't actually cost a lot more than a std system to install and there were grants available to subsidise more efficient heating systems, rather like in the UK.
The reason heat pumps are lower cost is because of their thermodynamic coefficient of performance (COP) which is something like 4 or so for these systems. A COP of 4 would mean you only pay for 1kWh to create 4kWh of heat effect, unlike an electric heater which has a COP of 1. So even if you are using more expensive electricity to power the system, it uses less energy and still costs less than gas or electric heating – with the benefit of aircon in the summer months. In many cases you can do away with the gas / oil / electric heating altogether.
The system components are very well proven, as they have been is use for many years across the world within aircon, refrigeration and heat pump systems. Our system came with a 10 year parts and labo(u)r manufacturer-backed warranty which wasn't unusual. Externally (hidden behind some bushes), there was a heat exchanger with a fan inside it that was about big enough to hide inside if you removed the guts. It wasn't much noisier than many modern condensing boilers (which also have a fan).
Not so convinced about ground source systems, given the extra installation cost and effort. One of the main obstacles to heat pumps in the UK must be the low demand and lack of awareness. This must push up the cost and probably limits uptake to mainly the eco-warrier / tree hugger minority. Pity – as they have a lot going for them.
Murray