EPC Grants for Landlords: Every Scheme Available in 2026

UK landlords can access grants worth up to £30,000 per property in 2026 through four government-backed schemes: the Boiler Upgrade Scheme (BUS), the Energy Company Obligation (ECO4), the Warm Homes: Local Grant, and the Great British Insulation Scheme (GBIS). By combining schemes, total available funding on a single property can exceed £37,500.

EPCGuide's analysis of 29.2 million EPC records shows that 62% of privately rented properties in England and Wales are currently rated D or below, making the majority of the rental stock eligible for at least one grant scheme. With the 2030 EPC C deadline now confirmed, these grants are the most direct route to compliance without bearing the full cost yourself.

This guide covers every scheme available in May 2026, how much each pays, who qualifies, which grants stack together, and how grant funding interacts with the £10,000 cost cap. Use EPCGuide's grant eligibility checker to see which schemes apply to your specific property.

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme is a government grant administered by Ofgem that pays property owners to replace fossil fuel heating with low-carbon alternatives. Private landlords are explicitly eligible. The scheme was significantly updated by the Boiler Upgrade Scheme (Amendment) Regulations 2026, which came into force on 28 April 2026.

Grant amounts

Source: Ofgem Property Owner Guidance v5 (March 2026), MCS installer pricing data.

Key changes from April 2026

Three changes matter for landlords:

1. EPC requirement removed. Properties no longer need a valid EPC to qualify. The old rule requiring no outstanding loft or cavity wall insulation recommendations is gone entirely. This opens up properties that were previously disqualified.
2. Scheme extended to 2030. BUS was previously set to end in 2028. It now runs until at least March 2030, aligned with the EPC C compliance deadline.
3. Air-to-air heat pumps added at £2,500. These are simpler, cheaper systems particularly suited to flats and leasehold properties where a full heat pump retrofit is difficult.

Eligibility

• Property in England or Wales
• Existing fossil fuel heating system (gas, oil, LPG, electric, coal)
• Installation by an MCS-certified installer
• One grant per property (portfolio landlords can claim on multiple properties)
• No income test, no tenant eligibility requirement

The grant is paid directly to the installer, who deducts it from your invoice. You never handle the money. Applications are made through the installer, who submits to Ofgem on your behalf.

For a step-by-step walkthrough, see EPCGuide's BUS application guide for landlords.

Energy Company Obligation (ECO4)

ECO4 is the UK's main route to free insulation and heating upgrades. Unlike BUS, it is not a direct government grant. Energy companies are legally required to fund the work as part of their supplier obligation. The practical effect for landlords is the same: qualifying properties receive upgrades at no cost.

ECO4 closes permanently on 31 December 2026. There is no confirmed replacement. The Warm Homes Obligation (sometimes called ECO5) has been consulted on, but no start date has been announced.

What ECO4 covers

Typical total value per property: £3,000 to £15,000 depending on measures installed.

Eligibility

ECO4 eligibility is based on your tenant's circumstances, not yours:

Route 1: Qualifying benefits. Your tenant receives Universal Credit, Pension Credit, Income Support, income-based JSA, income-related ESA, Child Tax Credit (income under £31,000/year), or Working Tax Credit (income under £31,000/year).

Route 2: LA Flex. Your local authority refers the property because the tenant has a low household income (typically under £31,000/year) or lives in a cold home affecting their health, even without receiving formal benefits. This route is widely overlooked and varies by area.

The property must be rated EPC D, E, F, or G. Properties already at C or above do not qualify.

Why landlords should act now

Installers book up months ahead of scheme deadlines. The December 2026 closure date is firm. EPCGuide's ECO4 guide covers the full application process, consent requirements, and what happens when the scheme ends.

Warm Homes: Local Grant

The Warm Homes: Local Grant (WH:LG) is the most generous scheme available to landlords by headline amount. It is council-administered, funded by the Department for Energy Security and Net Zero (DESNZ), and launched in 2025 as part of the government's Warm Homes Plan.

Grant amounts for landlords

• First eligible rental property: up to £30,000 (split as up to £15,000 for energy efficiency measures and up to £15,000 for clean heating measures). Fully funded, no landlord contribution required.
• Additional rental properties: up to £15,000 per property. 50% landlord co-funding required.

This is a per-property cap, not a per-landlord cap. A landlord with four qualifying properties could access up to £75,000 in total (£30,000 for the first, £15,000 each for the next three).

What it funds

• Insulation: loft, cavity wall, solid wall, floor
• Low-carbon heating: air source and ground source heat pumps, solar thermal
• Solar PV panels
• Double glazing and draught-proofing
• Smart heating controls

Eligibility

Eligibility has two components:

Property requirement: EPC rating of D, E, F, or G. Properties already at C are excluded.

Tenant requirement: The tenant must be on a low income or receiving qualifying benefits. Household income thresholds are set locally, but typically fall below £36,000 gross.

Coverage varies by local authority. Each council receives its own funding allocation and some have already exhausted their budget. Check availability using the GOV.UK Warm Homes postcode checker or call the national helpline on 0800 098 7950.

EPCGuide's Warm Homes guide tracks which local authorities are currently accepting applications and covers the Greater Manchester Good Landlord Scheme pathway.

Great British Insulation Scheme (GBIS)

GBIS runs alongside ECO4 using the same energy supplier delivery network, but with a wider eligibility route that does not always require the tenant to be on benefits.

What it covers

• Cavity wall insulation
• Loft insulation
• Solid wall insulation (in some cases)
• Room-in-roof insulation
• Flat roof insulation

Typical value: £1,500 to £8,000 per property.

Eligibility

Two routes:

Benefits route: Same qualifying benefits as ECO4 (Universal Credit, Pension Credit, etc.).

Council Tax band route: The property is in Council Tax bands A to D (England) or A to E (Scotland and Wales). No tenant benefit requirement. This is the route that makes GBIS accessible to landlords whose tenants are working and not on benefits.

The property must be rated EPC D, E, F, or G and must not already have the insulation measure being applied for. A property that already has cavity wall insulation cannot receive GBIS funding for cavity wall insulation.

GBIS is particularly useful for landlords who cannot access ECO4 because their tenants are not on qualifying benefits, but whose properties sit in lower Council Tax bands.

Local Authority Top-Up Grants

Beyond the national schemes, some councils run their own EPC improvement funding programmes. These are typically smaller in value (£1,000 to £5,000) but can supplement national grants.

Examples include local Decent Homes funding for the private rented sector, council-run insulation voucher schemes, and fuel poverty reduction programmes. Availability varies by area and changes frequently.

Check your local council's housing or energy team directly. EPCGuide's grant checker flags local schemes where known.

Tax Relief on EPC Improvements

Grants are not the only way to reduce the cost of EPC upgrades. HMRC allows landlords to deduct certain improvement costs from their rental income, depending on whether the work counts as a revenue expense or capital expenditure.

Revenue expenses (deductible against rental income)

• Like-for-like boiler replacement: replacing a gas boiler with an equivalent gas boiler is a repair, fully deductible.
• LED lighting: treated as a consumable maintenance cost.
• Hot water cylinder jackets: trivial cost, classified as maintenance.
• Draught-proofing replacement: if replacing existing draught-proofing with broadly equivalent modern materials, this falls under HMRC's "modern materials" exception.

Capital expenditure (not deductible against rental income)

• New insulation (loft, cavity wall, solid wall, floor)
• Heat pump installation
• Double glazing replacing single glazing
• Solar PV panels

Capital improvements cannot be offset against rental profits in the year they are made. However, they can be offset against capital gains tax when the property is eventually sold. For rental properties held in a company, capital allowances may apply to some qualifying plant and machinery.

Grant-funded improvements cannot be claimed as an expense at all, since the landlord did not pay for them.

EPCGuide's full tax relief guide covers every improvement category and the three routes to recovering costs.

Which Grants Can You Stack?

This is where real savings happen. Most schemes can be combined on the same property, but the rules vary.

Permitted combinations

Maximum realistic grant stack

For a single property where all eligibility criteria are met:

• BUS: £7,500 (air source heat pump)
• ECO4: £10,000--£15,000 (insulation and secondary measures)
• Warm Homes (first property): up to £30,000

In theory, a landlord's first qualifying property could receive over £37,500 in combined grant funding. In practice, once one scheme covers a measure, another cannot fund the same work. The realistic total depends on how many different measures the property needs.

Planning the sequence matters. Insulate first, then install the heat pump. A well-insulated property needs a smaller (cheaper) heat pump, and the heat pump performs better in a building with low heat loss. Apply for ECO4 or GBIS insulation first, then BUS for the heat pump.

How Grants Interact with the £10,000 Cost Cap

The government's £10,000 cost cap is the maximum a landlord must spend out of pocket on EPC improvements to reach band C. If you hit £10,000 in qualifying spend and your property still cannot reach C, you can register a cost cap exemption and continue letting legally.

Grant funding does not count toward the cap. Only money the landlord personally spends counts. This is a critical distinction.

Example: You spend £3,000 of your own money on draught-proofing and glazing. You receive a £7,500 BUS grant for a heat pump and £5,000 in ECO4 insulation funding. Your cost cap spend is £3,000, not £15,500. You still have £7,000 of cap headroom.

This means grants effectively extend your total improvement budget well beyond the cap. A landlord who secures grant funding for the major items (heating, insulation) can use their personal £10,000 cap allowance for the smaller measures that grants do not cover (glazing, draught-proofing, smart controls).

Note: qualifying spend toward the cap is counted from 1 October 2025 onward, including the cost of the EPC assessment itself.

Eligibility Decision Tree

Not sure which grants apply to your property? Work through this:

Step 1: Is the property in England or Wales?

• Yes: BUS, ECO4, GBIS, and Warm Homes are all potentially available.
• Scotland: ECO4 and GBIS apply. BUS does not. Scotland runs separate grant schemes through Home Energy Scotland.
• Northern Ireland: Separate schemes entirely.

Step 2: Does the property have fossil fuel heating (gas, oil, LPG, electric)?

• Yes: BUS eligible (£7,500 ASHP/GSHP, £5,000 biomass, £2,500 air-to-air).
• No (already has a heat pump or renewable heating): BUS not available.

Step 3: Is the property rated EPC D, E, F, or G?

• Yes: ECO4, GBIS, and Warm Homes all require sub-C ratings.
• No (already C or above): Only BUS applies (which removed its EPC requirement in April 2026).

Step 4: Does the tenant receive qualifying benefits?

• Yes: ECO4 eligible. GBIS eligible via benefits route.
• No: Check Council Tax band for GBIS (bands A-D in England). Check Warm Homes: Local Grant via LA Flex or low-income threshold.

Step 5: Is the property in a Council Tax band A-D area?

• Yes: GBIS eligible via the Council Tax route, regardless of tenant benefits.
• No: GBIS only available if tenant qualifies via benefits.

Step 6: Is the local authority participating in Warm Homes: Local Grant?

• Yes: Apply. Up to £30,000 for first property.
• No/unknown: Check the GOV.UK postcode checker or call 0800 098 7950.

For a faster answer, run your property through EPCGuide's grant eligibility checker, which automates this logic and flags valid combinations.

How to Apply: The Practical Sequence

The order you apply matters. Follow this sequence to maximise funding and avoid disqualifying yourself from stacking.

1. Get your EPC up to date. Check your current rating at GOV.UK Find an Energy Certificate. If the EPC is more than two to three years old, consider getting a fresh assessment. The recommendations list drives which grants you can claim and which measures count toward the cost cap.

2. Run the eligibility checker. Use EPCGuide's grant checker to identify every scheme your property qualifies for in one place, rather than checking four separate government websites.

3. Apply for insulation grants first. ECO4 (if tenant qualifies) or GBIS (Council Tax band route) for insulation measures. Also check Warm Homes: Local Grant for your area. Insulating first means any subsequent heat pump can be smaller and cheaper.

4. Apply for BUS. Once insulation is sorted, apply for BUS through an MCS-certified installer for the heat pump grant. The installer handles the Ofgem paperwork.

5. Track your spending. Keep receipts for all out-of-pocket spend from 1 October 2025 onward. This accumulates toward your £10,000 cost cap and provides evidence for a cost cap exemption if needed.

6. Get a new EPC after works. Commission a fresh EPC assessment to confirm your new rating. This is the document that proves compliance with the 2030 deadline.

What Happens After ECO4 Ends?

ECO4 closes on 31 December 2026 with no confirmed replacement at the time of writing (May 2026). The government's Warm Homes Plan commits £15 billion over five years, but the delivery mechanism is shifting.

What continues:

• BUS runs until 2030
• Warm Homes: Local Grant runs until at least 2028
• GBIS is expected to continue in some form

What is uncertain:

• The Warm Homes Obligation (WHO), sometimes described as ECO5, has been consulted on but has no confirmed start date or funding level
• Whether WHO will match ECO4's breadth of coverage is unknown

The practical takeaway: if your tenant qualifies for ECO4, apply now. Waiting until autumn 2026 risks missing the deadline as installers fill up. If ECO4 does not apply to your property, BUS and Warm Homes are available through 2028 at minimum.

EPCGuide's article on what replaces ECO4 covers the Warm Homes Plan transition in full.

Common Mistakes Landlords Make with Grants

Assuming tenants need to be on benefits. GBIS has a Council Tax band route that bypasses benefit requirements entirely. Warm Homes: Local Grant has an LA Flex pathway for low-income tenants who are not on formal benefits.

Waiting until late 2026 for ECO4. Installers are already booking months ahead. The December 2026 deadline is firm. Leaving it until Q4 2026 risks being unable to secure an installer appointment.

Installing a heat pump before insulating. A heat pump in a poorly insulated property costs more to run and needs to be larger. Insulate first, then install the heat pump. This also means the heat pump grant covers a cheaper system.

Ignoring the cost cap interaction. Grant-funded work does not count toward the £10,000 cost cap. This is good news: it means your personal spending threshold is separate from grant funding. Plan your grant applications to cover the most expensive measures, then use your cap allowance for the rest.

Not keeping receipts from October 2025. Qualifying spend toward the cost cap counts from 1 October 2025. If you have already paid for improvements without keeping documentation, those costs may not count toward your cap.

The Full Cost Picture

To understand how grants fit into your total upgrade cost, EPCGuide's complete guide to EPC improvement costs breaks down every measure by price, SAP point impact, and property type. The EPC cost calculator gives a personalised estimate for your specific property.

For properties that cannot reach EPC C even after grants and personal spending, the cost cap exemption guide explains how to register and continue letting legally.

Summary: Every EPC Grant at a Glance

Check which grants your property qualifies for

This article provides general guidance based on publicly available scheme rules as of May 2026. Eligibility criteria vary by scheme and local authority. Always verify directly with the relevant scheme administrator before making financial decisions. EPCGuide is not a financial adviser.