The ECO4 scheme — the UK's main source of free insulation and heating grants — closes permanently on 31 December 2026. There is no confirmed replacement. If you own a rental property and your tenants are on qualifying benefits, you have less than nine months left to claim works that could cost you nothing while pushing your EPC rating toward the 2030 C standard.
This guide explains exactly what ECO4 covers for rental properties, whether your tenants qualify, how the landlord consent process works, and what steps to take before the window closes.
When Does ECO4 End?
ECO4 was originally due to end in March 2026. In January 2026, the government confirmed a final extension to 31 December 2026, with no further extensions planned. The government's ECO4 extension response (gov.uk) confirmed that no new product applications would be accepted after this date.
Whether a successor scheme — the Warm Homes Obligation (WHO), sometimes called ECO5 — will be ready to launch in early 2027 is not confirmed. The consultation has been published, but a start date for the WHO has not been announced. Landlords and tenants who leave ECO4 claims until next year may find themselves without an alternative.
The practical window for ECO4 claims is now — not December. Installers become fully booked months ahead of scheme deadlines, and the December 2026 date is no exception.
What ECO4 Covers for Rental Properties
ECO4 funds a wide range of energy efficiency improvements. For rental properties, the most relevant measures are:
| Measure | Typical Cost (Unfunded) | ECO4 Funded? | |---|---|---| | Loft insulation | £300–£600 | ✅ Yes — often fully funded | | Cavity wall insulation | £500–£1,500 | ✅ Yes — often fully funded | | Solid wall insulation (external) | £8,000–£22,000 | ✅ Yes — often fully funded | | Solid wall insulation (internal) | £4,000–£14,000 | ✅ Yes — partial or full funding | | First-time central heating | £3,000–£5,000 | ✅ Yes | | Air source heat pump | £7,000–£15,000 | ✅ Yes (if property suitable) | | Storage heaters (electric) | £1,500–£3,500 | ✅ Yes (in some cases) | | Flat roof insulation | £1,500–£3,000 | ✅ Yes | | Room-in-roof insulation | £1,500–£3,000 | ✅ Yes | | Solar PV panels | Varies | ⚠️ Limited — only as part of package | | Gas boiler replacement | £2,500–£4,000 | ❌ No — ECO4 focuses on low-carbon |
The works are funded by energy suppliers under their government obligation. You do not receive money directly — an approved installer visits the property, carries out the work, and is reimbursed by the energy supplier.
Does Your Tenant Qualify?
Your tenant needs to meet at least one of the following criteria. Landlord income and property value are irrelevant — it is purely tenant-based.
Route 1 — Qualifying Benefits (Main Route)
Your tenant qualifies if they receive any of:
- Universal Credit (including those in work)
- Pension Credit (Guarantee Credit or Savings Credit)
- Income-based Jobseeker's Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Child Tax Credit (household income under £31,000/year)
- Working Tax Credit (household income under £31,000/year)
Around 25–30% of private rental households in England include at least one adult receiving a qualifying benefit. If you have five or more rental properties, statistically one or two tenants are likely to qualify.
Route 2 — LA Flex (Low Income Without Benefits)
Many landlords overlook this route. Local authorities can refer properties under LA Flex if the tenant has a low household income (typically under £31,000/year) or lives in a cold home affecting their health — even if they receive no qualifying benefit.
This route is available at local authority discretion and varies by area. In practice, it means the eligibility pool is wider than the benefits list suggests. Worth enquiring with your local council about LA Flex referrals.
How ECO4 Works for Landlords
ECO4 involves your tenant's situation but requires your active participation as the property owner.
Step 1 — Tenant checks eligibility Your tenant contacts an approved ECO4 installer or energy company directly to check eligibility. Alternatively, use the government's ECO4 portal or our grant checker tool.
Step 2 — Landlord gives written consent Before any works can begin, the landlord must give written permission. This protects your interests — the installer cannot proceed without your sign-off. You will typically receive a consent form and a survey report showing exactly what will be done.
Step 3 — Survey and design The installer surveys the property and designs the measures. For insulation, this usually takes a morning. For heat pumps or central heating, it takes longer.
Step 4 — Works are carried out The installer arranges access with your tenant (and you, if the property is void). Works take 1–5 days depending on scope. You pay nothing — the installer is paid by the energy supplier.
Step 5 — New EPC assessment After works are complete, the property should be re-assessed for a new EPC. This captures the improved rating and is your evidence for MEES compliance.
A note for landlords: You have the right to refuse consent. If you believe the proposed works could damage the property or are unsuitable, you do not have to proceed. Quality installers will explain the works clearly. Be wary of high-pressure tactics.
Which Properties Qualify?
EPC Rating
ECO4 prioritises the worst-performing homes. Properties rated EPC E, F, or G are the primary targets — ECO4 was designed to address fuel poverty, and these ratings correlate with the highest energy costs.
Properties rated EPC D can also qualify if the tenant meets the benefits criteria. EPC A, B, or C properties are unlikely to qualify unless under LA Flex in exceptional circumstances.
Property Type
ECO4 applies to all private rented properties:
- Houses (detached, semi-detached, terraced)
- Flats (including converted and purpose-built)
- HMOs (assessed at the property level)
- Properties of any age — Victorian terraces to 1990s homes
Geographic Coverage
ECO4 applies across England, Scotland, and Wales. Availability of specific measures depends on the installed base in your area — some regions have more approved installers than others.
What Comes After ECO4?
The honest answer: uncertain. The government's Warm Homes Obligation (WHO), also called ECO5, is the proposed successor to ECO4. A consultation document was published in 2025. However:
- No confirmed launch date has been announced
- The WHO is expected to have different eligibility criteria and a greater focus on heat pumps
- It is not guaranteed to include the same level of landlord/tenant eligibility
The Warm Homes Local Grant, which is separate from ECO4, already provides up to £30,000 for eligible properties — but covers different eligibility criteria and is locally administered, not a like-for-like ECO4 replacement.
The safest assumption: there will be a funding gap between December 2026 and whatever follows. Landlords who act in 2026 lock in the benefit. Those who wait may find themselves without an option for potentially 12–24 months.
How to Apply Before the Deadline
1. Check your tenant's eligibility now
Ask your tenants whether they receive any qualifying benefits (UC, Pension Credit, ESA, JSA, Income Support). This does not require a formal process — a simple conversation is enough to know whether it is worth pursuing.
Use our free grant checker to confirm eligibility and see which measures the property is likely to qualify for based on its EPC rating.
2. Find an approved ECO4 installer
Go to the government's ECO4 consumer guidance page or search the Ofgem-approved supplier list. Major energy companies (British Gas, E.ON, EON Next, OVO, Bulb) all have ECO4 installer networks. Get at least 2 quotes.
3. Give written consent and book works
Once you confirm the proposed works are appropriate, sign the consent form. The sooner you book, the better — installer slots from September 2026 onwards will be heavily oversubscribed as the December deadline approaches.
4. Combine with the Boiler Upgrade Scheme where applicable
If your tenant qualifies for ECO4 insulation measures but you also want to install a heat pump, you can combine ECO4 (for insulation) with the £7,500 Boiler Upgrade Scheme grant. The insulation makes the heat pump more efficient, reduces the required unit size, and improves the EPC further.
Landlord FAQ
Can I choose my own installer for ECO4? No — the work must be carried out by an Ofgem-approved ECO4 installer. The approved installer will be arranged through your tenant's energy company or via an ECO4 broker.
Do I have to pay anything? In most cases, no. Fully qualifying properties can have all eligible measures installed at no cost. Some measures (e.g., external solid wall insulation on complex properties) may have a small co-payment in some cases — always confirm before agreeing.
Can I claim ECO4 on multiple properties? Yes — each eligible property is assessed independently. If you have three properties with tenants on qualifying benefits, all three can potentially receive ECO4 works.
What if my tenant is not on benefits? You may still qualify via the LA Flex route if your tenant has a low household income or lives in cold conditions. Contact your local council to ask about LA Flex referrals.
Will my tenant need to move out during works? For insulation works (loft, cavity wall), no — the works are minimally disruptive and usually done within a day. For external solid wall insulation or heat pump installation, some disruption is likely and advance notice to tenants is important.
Does ECO4 affect my legal obligations as a landlord? ECO4 works done properly should only help your compliance position — improving your EPC rating reduces your risk under MEES regulations and the 2030 EPC C deadline. Make sure a new EPC is issued after works are complete.
What if the work is done poorly? All ECO4 installers must be PAS 2030 and PAS 2035 certified. This certification includes a requirement for quality assurance checks and a complaints process. If you have issues, raise them with the installer first, then with Ofgem, then with the Trustmark scheme under which most ECO4 installers operate.
Act Before the Queue Builds
ECO4 ends 31 December 2026. The practical deadline for getting works done is closer to September 2026 — after that, installer waiting lists will stretch past the scheme closure. If your tenants qualify, the best time to act is now.
Use our grant checker to see what your property qualifies for in under two minutes. If ECO4 isn't available for your situation, you may still qualify for the Warm Homes Local Grant or the £7,500 Boiler Upgrade Scheme.