Most articles about EPC grants focus entirely on eligibility — who can apply, how much you can get, and how to claim. Fewer tell you what happens after you've accepted.
That gap matters more than ever following a report published on 25 March 2026 by tenant advocacy group Generation Rent, which calls for landlords who receive government grants for EPC improvements to face a two-year ban on "landlord need" evictions after the works are complete. The government hasn't adopted these proposals yet — but the campaign has the attention of ministers.
Before your next grant application, here's exactly what you're currently agreeing to, what you're not, and what could change.
Why Landlords Need to Read the Small Print Now
Generation Rent's new report, Raising Standards, Not Rents, sets out a series of demands tied specifically to government-funded EPC improvements. The headline proposal: "Where landlords receive a government grant or loan to fund retrofit work, renters should be protected from 'landlord need' evictions for two years after the work is complete. This will prevent landlords from instantly cashing in on a home's increased value post-retrofit."
The group also proposes that where retrofit is funded via a government grant, that value should be treated as "added by the tenant" at First-tier Tribunal rent assessments — meaning a landlord couldn't use government-funded improvements to justify a rent increase at review.
These are proposals, not law. But Generation Rent has a track record of influencing policy, and the government is actively consulting on how to prevent "retrofitting for eviction." Understanding the landscape now means you won't be caught off-guard.
ECO4 — What Conditions Currently Apply to Landlords?
ECO4 (the Energy Company Obligation, now extended to December 2026) is important to understand correctly: it is not a direct grant from the government. It's an obligation placed on energy companies — primarily the major suppliers — to fund energy efficiency measures in eligible properties. You don't sign a contract with DESNZ or Ofgem. You interact with an energy company or registered installer.
What you must provide
To receive ECO4-funded works, landlords must:
- Give written consent before works begin. The energy company or installer will require this as evidence of authorisation
- Cooperate in eligibility evidence gathering — the property or tenant must meet qualifying criteria (typically income-related benefits or low EPC rating under Flex criteria). You may need to provide tenancy details or evidence of property ownership
- Allow access for a Retrofit Coordinator to assess the property and oversee works
That's largely the extent of it. There's no formal post-works agreement registered with a government body.
Are there rent restrictions on ECO4?
Not formally. Energy company E.ON Next, which delivers ECO4 measures, advises that "landlords generally shouldn't increase rent specifically because of ECO4-funded improvements." However, this is guidance from the energy company, not a legal obligation. There is currently no statute preventing a landlord from re-letting at a higher market rent following ECO4 works.
This is precisely what Generation Rent wants to change. Their proposal would make the no-rent-increase position enforceable at tribunal.
⚠️ Important: If the government does adopt Generation Rent's proposals, they would most likely apply to future grant applications, not retrospectively to works already completed.
Boiler Upgrade Scheme (BUS) — The Formal Conditions
The Boiler Upgrade Scheme is a proper government-to-property-owner grant scheme, administered by Ofgem. Private landlords are explicitly named as eligible (confirmed on gov.uk). The conditions are more formal than ECO4.
Eligibility conditions (what you must meet)
To receive the BUS grant (£7,500 for ASHP or GSHP; £5,000 for biomass boilers):
- Property must be in England or Wales
- Must have a valid EPC (no specific rating required)
- Existing heating system must be fossil-fuel or electric-based (gas, oil, or storage heaters)
- Replacement must be installed by an MCS-certified installer — the installer claims the voucher from Ofgem on your behalf
- One grant per property — you cannot stack this with other government funding for the same heat pump or biomass boiler installation
- No new-builds — properties that have already received government heat pump or biomass funding are excluded
There are no post-works conditions currently attached to BUS around rent levels or evictions.
What BUS doesn't cover
- Hybrid systems — the scheme does not fund hybrid heat pump/boiler combinations
- Properties where insulation is the barrier — the old insulation prerequisite was removed in May 2024, so this is no longer a blocker, but you still need adequate insulation for the heat pump to work efficiently (your installer will assess this)
- Properties outside England and Wales — Scotland has separate schemes (see our Scottish landlord EPC guide)
The scheme runs until December 2027 with a 2025/26 budget of £295 million.
Warm Homes Local Grant — Conditions Vary by Council
The Warm Homes Local Grant is delivered by combined authorities and councils, which means conditions vary significantly by location. Some important scheme-level conditions to be aware of:
The 50% co-contribution rule for multiple properties
This is the most significant condition many landlords don't know about: for private landlords, the first property in any application may be fully funded (subject to tenant eligibility). However, any subsequent properties owned by the same landlord require a 50% landlord cost contribution toward the total cost of works.
If you own a portfolio and are planning to put multiple properties through the Warm Homes Local Grant, budget for this co-contribution from property two onwards.
Council-specific conditions to watch for
Individual combined authorities and councils can add their own conditions. Greater Manchester's scheme (via the Good Landlord Charter), for example, requires landlords to be Charter members. Other areas may stipulate:
- Minimum tenancy period post-works
- Evidence of active tenancy at time of application
- Landlord contribution requirements regardless of property number
- Stricter evidence checks for ownership and income eligibility
Always read the scheme guidance for your specific area before applying.
What Generation Rent Is Proposing (Not Law — Yet)
Generation Rent's Raising Standards, Not Rents report (March 2026) makes several demands specifically linked to government-funded EPC improvements. These are not current law, but they are being directed at ministers in the context of the Renters' Rights Act implementation.
The 2-year eviction protection proposal
The most discussed demand: landlords who receive a government grant or loan for EPC works should be barred from using "landlord need" grounds for eviction for two years post-works. The stated aim is to prevent landlords from improving a property with public money, evicting the tenant, and then re-letting at a higher rent.
With Section 21 now abolished, "landlord need" evictions (Ground 1A for selling, Ground 6 for demolition/major works) already require 4 months' notice. The proposal would add an additional two-year moratorium for grant recipients.
Rent reclassification at tribunal
Generation Rent also proposes that where retrofit work is funded via a government grant, the value of that improvement should be treated as "added by the tenant" at a First-tier Tribunal rent assessment. This would prevent the tribunal from factoring in government-funded improvements when determining a "market rent" — limiting a landlord's ability to justify a rent increase on that basis.
Rent Repayment Orders for non-compliance
Separately (but relevant): the report proposes that tenants in properties that don't meet EPC C by 2030 (and aren't exempt) should be able to claim Rent Repayment Orders. This is distinct from the grant conditions but relevant context for understanding the direction of travel.
Should These Proposed Conditions Put You Off Applying?
Probably not. Here's a balanced assessment:
Current conditions are manageable. ECO4 requires written consent and eligibility cooperation. BUS requires an MCS installer and one-grant-per-property compliance. Warm Homes Local requires attention to co-contribution rules for portfolios. None of these are onerous.
Proposed conditions haven't been adopted. Generation Rent's proposals would require primary legislation or amendments to existing schemes. The government has not signalled it will adopt all or even most of these demands.
The compliance benefit outweighs the risk. Failing to reach EPC C by 2030 carries significantly higher risk — fines up to £30,000 per property, mortgage refusals, and potential Rent Repayment Order exposure under Generation Rent's own proposed framework. Accepting a grant to fund compliance is still the pragmatic position.
Apply earlier rather than later if you're concerned about future conditions. As noted above, if conditions are ever added, they're likely to apply to new grant applications, not works already completed.
What to Check Before You Accept Any Grant (Practical Checklist)
Before accepting ECO4, BUS, or Warm Homes funding, run through these:
- Confirm one-grant-per-property — check your properties haven't previously received government heat pump/biomass funding (BUS exclusion)
- For Warm Homes Local: check if you're property #2+ in an application — budget for 50% co-contribution if so
- Check council-specific conditions — download the scheme guidance for your combined authority before applying
- Give written consent clearly — keep a copy of any consent you sign for ECO4 works; this is your evidence record if a dispute arises
- Understand the EPC impact — before the BUS, get a projection of the EPC change. If a heat pump will lower your current RdSAP score (common in older properties), factor this in alongside the HEM compliance benefit
- Check your tenancy position — if you're planning to sell a property within 2–3 years, factor in that proposed conditions could eventually restrict this after grant-funded works
If you're considering registering an exemption instead of applying for grants, read our guide to registering a MEES exemption for properties where the full upgrade isn't viable.
Frequently Asked Questions
What conditions are currently attached to ECO4? Landlords must give written consent for works to proceed and cooperate in eligibility evidence gathering. There are no formal rent restrictions or eviction conditions currently attached to ECO4 works.
Can landlords raise rent after ECO4-funded improvements? Not legally prohibited from doing so under current law — energy companies advise against it, but there's no statute preventing it. Generation Rent is campaigning to change this; no legislation has been introduced as of March 2026.
Is there anything I'm legally committing to with the Boiler Upgrade Scheme? The main formal conditions are eligibility-related (one grant per property, MCS-certified installer, valid EPC). There are no post-works rent or tenancy conditions currently attached to BUS.
What is Generation Rent proposing for EPC grants? Their Raising Standards, Not Rents report (March 2026) proposes: a 2-year ban on "landlord need" evictions after grant-funded works; reclassification of government-funded improvements as "tenant value" at rent tribunal; and Rent Repayment Orders for non-compliant properties. These are campaign demands, not current law.
Do Warm Homes Local Grant conditions vary by council? Yes. Core conditions include a 50% landlord contribution for portfolio landlords (2nd property onwards), and individual areas add their own requirements. Always check the guidance for your specific combined authority.