Thread revival.
If you buy an old house with solid stone walls, what do you do? External insulation would ruin all its appeal, and internal insulation reduces the space and means enormous disruption as all woodwork, electrics, etc, have to be moved.
The need for insulation (which would be of equal benefit with any form of heating, in a pure heat loss sense) seems to be because heat pumps aren't good at bringing a house up from cold.
Biomass might be a better option, but they can turn you down for a grant if you don't meet the insulation standards.
Heatpumps (and biomass solutions) will be closely sized to match the building heat loss to avoid inefficient and equipment-life-shortening cycling on/off. They are also typically designed with a 5C delta between flow/return temperature. Accordingly, they have minimal spare capacity to bring the house up to temperature, especially at times of peak demand in cold weather, and are therefore best operated on a "low and slow" basis. We have a wood pellet biomass boiler, and it's set to run as required by weather compensation controls throughout the winter, with a night set-back target temperature only about 3C below the day target otherwise it can struggle to get the house warm again the next day when it's v cold.
There are two obvious solutions to this problem for heat pumps
1. Install a heat pump as lead "boiler" but retain a gas boiler as "top-up" - i.e. operate a hybrid system. This avoids the need to replace radiators if you still need to operate at higher flow temperatures. This is probably not eligible for BUS grant though (I've not checked).
2. Install a two stage heat pump system. This allows overall system over-sizing without introducing rapid cycling on/off, and delivers some system redundancy. However, it adds significant cost and some control complexity but is probably worth it for large properties. Using two heat pumps with different refrigerants may maximise efficiency - allowing a low temperature heat pump to operate most of the time and deliver excellent seasonal COP, while allowing a higher temp heat pump to operate efficiency when required for top up heat (or to deliver domestic hot water at 60C)
The need for insulation improvements is only part of the problem here, and can be significantly overstated. Total heat loss from a property is a combination of building fabric heat losses, and ventilation heat loss - which can be significant in older properties. Some ventilation is required to introduce fresh air (debatable how "fresh") and prevent build-up of moisture. However, measuring ventilation heat-loss is beyond the wit of typical EPC assessors so they use default values and focus on what they can see which is the building fabric. You can have a proper air-tightness test done (e.g.
https://airtightnesstesting.co.uk/pricing/) and this is now a requirement for new properties under the Part L Building Regs. I think if you had evidence of low air change rate that would help mitigate requirements for disproportionately costly upgrades to insulation in hard-to-treat locations.
With respect to biomass possibly being a better option my advise is "don't". They will still be sized close to the total building heat demand so will still take a long while to heat the property up from cold in the winter. Moreover, the cost of servicing is heinous - mine is now 10 years old and the standard service without major parts or repairs is at least £425 a year, compared to maybe £100 for an oil boiler.
10 years ago, heat pumps aren't what they are now. If I was replacing the system again tomorrow I'd go down the heat pump route.