Warm Homes Plan for Landlords: What You Need to Know
The Warm Homes Plan is the UK government's £15 billion programme to upgrade five million homes by 2030, and it replaces the old ECO supplier obligation model with direct government funding. For private landlords, it provides three funding streams: the Warm Homes Local Grant (available now), the Boiler Upgrade Scheme (continuing), and a new Consumer Loans Scheme launching April 2027. The first property in a landlord's portfolio can be fully funded, but a 50% cost contribution is required for every property after that.
Key Facts
- Total funding: £15 billion over five years (2025-2030) to upgrade five million homes
- Warm Homes Local Grant: Available now for properties EPC D-G with low-income tenants (household income under £36,000)
- Boiler Upgrade Scheme: Continues for all landlords, £7,500 toward heat pump installation, no income requirement
- Consumer Loans Scheme: Launching April 2027, up to £1.7 billion in low-interest financing for heat pumps, solar, batteries
- 50% portfolio rule: First property fully funded, 50% landlord contribution required for every subsequent property
- No rent increase condition: Landlords receiving Local Grant funding must not increase rent as a result of the improvements
- ECO4 ends: December 2026, with no ECO5 replacement. The Warm Homes Plan is the successor
- Warm Homes Agency: New delivery body, fully operational from April 2027
What is the Warm Homes Plan?
The Warm Homes Plan is the government's flagship programme to improve energy efficiency across the UK housing stock, published on 21 January 2026. It replaces the old supplier obligation model (ECO), where energy companies funded home upgrades, with a system of direct government grants, local authority delivery, and new consumer finance products.
For landlords, this is a significant shift. Under ECO4, funding depended on which energy supplier served the property and whether a landlord could navigate the application process before the scheme closed. Under the Warm Homes Plan, funding flows through local authorities and central government agencies, with clearer eligibility criteria and longer-term availability.
The plan commits £15 billion over five years to upgrade up to five million homes by 2030. Per the government's own impact assessment (MHCLG 2026), 52% of private rented stock currently sits below EPC C, making landlords one of the primary target groups for this funding.
For background on how this replaces ECO4, see our guide on what replaces ECO4 for landlords. For the ECO4 deadline itself, see our ECO4 ending guide.
What funding is available for landlords right now?
Two funding streams are open to private landlords today. A third launches in April 2027.
1. Warm Homes: Local Grant (available now)
The Warm Homes Local Grant is the primary post-ECO4 funding route for landlords with low-income tenants. It covers insulation, heating upgrades, and energy efficiency measures for properties rated EPC D to G.
Eligibility:
- Property must be in England with an EPC rating of D, E, F, or G
- Tenant household income must be £36,000 per year or less (or tenant receives means-tested benefits)
- Landlord must agree not to increase rent as a result of improvements
- Landlord must confirm compliance with subsidy rules (Minimal Financial Assistance limit of £315,000 over three financial years)
The 50% portfolio rule: This is the critical detail most landlord guides miss. The first property in a landlord's portfolio can be fully funded through the Local Grant. For every subsequent property, the landlord must contribute 50% of the upgrade cost. This means a landlord with five properties rated below C could get the first one upgraded for free but would need to pay half the cost for the other four.
How to apply: Applications go through your local authority or their regional delivery partner. There is no single national application form. EPCGuide's analysis shows significant variation between councils in processing times, available measures, and funding levels. Contact your local authority's housing or energy team to find out what is available in your area.
For a broader look at grant conditions and eligibility, see our grant conditions guide.
2. Boiler Upgrade Scheme (available now)
The BUS provides up to £7,500 toward the cost of installing a heat pump. It is available to all landlords regardless of tenant income and has no means-testing requirement. Following the April 2026 regulation changes, the EPC requirement for BUS eligibility has been removed, and the scheme has been extended to 2030.
Key details for landlords:
- £7,500 for air source heat pumps (hydronic)
- £2,500 for air-to-air heat pumps (new from April 2026)
- No EPC requirement (previously needed a valid EPC)
- Installer must be MCS-certified
- Can be combined with Local Grant funding for insulation
For a step-by-step application walkthrough, see our BUS application guide.
3. Consumer Loans Scheme (launching April 2027)
The Consumer Loans Scheme will provide up to £1.7 billion in low-interest financing for home energy improvements. It is primarily targeted at owner-occupiers but the government has launched a call for evidence on extending loans to private and social landlords.
What we know so far:
- Launches April 2027 alongside the new Warm Homes Agency
- Covers heat pumps, solar panels, batteries, insulation, and other technologies
- Designed to work alongside BUS (so a landlord could use the £7,500 BUS grant plus a low-interest loan to cover the remaining cost)
- Interest rates and exact terms not yet confirmed
- The call for evidence on landlord access closed in Spring 2026, with results expected by late 2026
This is the piece most landlords are waiting for. The combination of a £7,500 BUS grant plus a low-interest loan could make heat pump installation cash-flow neutral from day one, particularly for properties where the EPC improvement unlocks green mortgage rate discounts of 0.1-0.3%.
How does the Warm Homes Plan differ from ECO4?
The shift from ECO to the Warm Homes Plan changes the funding model fundamentally:
Funding source: ECO4 was funded by energy suppliers who passed costs to all bill payers. The Warm Homes Plan is funded directly by government through taxation and the Warm Homes Fund.
Delivery: ECO4 was delivered through energy suppliers and their contracted installers. The Warm Homes Plan is delivered through local authorities, the new Warm Homes Agency, and accredited installers.
Scope: ECO4 focused primarily on insulation and heating for low-income households. The Warm Homes Plan covers a wider range of technologies (solar, batteries, heat pumps) and includes finance products as well as grants.
Duration: ECO4 had a fixed end date (December 2026) with no successor scheme confirmed. The Warm Homes Plan runs to 2030 with £15 billion committed, giving landlords planning certainty.
Landlord treatment: ECO4 did not distinguish between a landlord's first and subsequent properties. The Warm Homes Plan introduces the 50% portfolio rule, making the first property more attractive to upgrade.
What does the 50% portfolio rule mean in practice?
The 50% portfolio rule is the single most important detail for landlords with multiple properties. Here is how it works in practice:
Landlord with 1 property (EPC E):
- Eligible for full Local Grant funding
- Estimated upgrade cost: £8,000
- Landlord pays: £0
- Condition: tenant income under £36,000, no rent increase
Landlord with 3 properties (all EPC D):
- Property 1: fully funded (£5,000 upgrade, landlord pays £0)
- Property 2: 50% funded (£5,000 upgrade, landlord pays £2,500)
- Property 3: 50% funded (£5,000 upgrade, landlord pays £2,500)
- Total landlord cost: £5,000 for three properties upgraded
Even with the 50% contribution, this is significantly cheaper than paying the full cost. A landlord upgrading three properties from D to C without any grant support would typically spend £15,000-£24,000. With the Local Grant, the same outcome costs £5,000.
The strategic implication: choose your first (fully funded) property carefully. Pick the one with the highest upgrade cost, as the grant covers the most expensive work for free. Then tackle cheaper upgrades on subsequent properties at 50% contribution.
For landlords weighing the cost of upgrading versus selling, see our sell or upgrade decision framework.
What should landlords do before April 2027?
The period between now and April 2027 is a planning window. Here is how to use it:
Immediately:
- Get a current EPC for every property in your portfolio if you do not have one
- Identify which properties have tenants who meet the Local Grant income criteria (household income under £36,000 or on means-tested benefits)
- Apply for the Local Grant for your highest-cost property first (to maximise the fully-funded benefit)
Before December 2026: 4. Apply for any remaining ECO4 funding. ECO4 and the Local Grant can apply to different properties, so use both while ECO4 is still open 5. Apply for BUS if you are considering a heat pump installation. The £7,500 grant is available now and does not count toward Local Grant subsidy limits
From April 2027: 6. Explore Consumer Loans once terms are published. The combination of BUS grant plus low-interest loan may make heat pump upgrades cash-flow positive 7. Apply for Local Grant funding for subsequent properties (at 50% contribution)
For a complete compliance roadmap, see our 2026 EPC action plan for landlords and our guide on the cheapest ways to improve EPC rating.
How does the Warm Homes Plan affect the 2030 EPC C deadline?
The Warm Homes Plan is designed to work in tandem with the 2030 deadline. The government's position is clear: the deadline stands, and the Warm Homes Plan provides the funding to help landlords meet it.
The £10,000 cost cap is the safety net. If a landlord spends up to £10,000 on improvements and the property still does not reach EPC C, they can register for an exemption. With Warm Homes Plan funding covering 50-100% of the upgrade cost, most landlords will reach the cap with a much lower out-of-pocket spend.
According to EPCGuide's analysis, the combination of Local Grant (first property free), BUS (£7,500 for heat pump), and Consumer Loans (from April 2027) means most landlords can reach EPC C on every property for under £5,000 total out-of-pocket spend across their portfolio. For more on the cost cap, see our £10,000 cost cap guide.
Frequently Asked Questions
Can private landlords access the Warm Homes Local Grant?
Yes. Private landlords can access the Local Grant for properties rated EPC D to G where the tenant's household income is below £36,000 or the tenant receives means-tested benefits. The first property is fully funded, with a 50% landlord contribution required for subsequent properties.
Does the Warm Homes Plan replace ECO4?
Yes. ECO4 ends in December 2026 with no ECO5 successor. The Warm Homes Plan replaces the old supplier obligation model with government-funded grants, local authority delivery, and new consumer finance products. The transition is already underway, with the Local Grant and BUS operating alongside ECO4 until it closes.
What is the Consumer Loans Scheme?
The Consumer Loans Scheme is a new £1.7 billion low-interest financing programme launching in April 2027. It covers heat pumps, solar panels, batteries, and insulation. It is primarily targeted at owner-occupiers, but the government has launched a call for evidence on extending access to private and social landlords.
Do I have to agree not to raise rent?
Yes, if you receive Warm Homes Local Grant funding. The grant condition explicitly requires that landlords do not increase rent as a result of the improvements. This condition applies per property. Note that normal market rent adjustments at tenancy renewal are a grey area, and guidance on enforcement is still being developed.
Can I combine BUS and Local Grant funding?
Yes. The BUS grant (£7,500 for a heat pump) can be used alongside Local Grant funding for insulation and other measures on the same property. They are separate schemes with separate application processes, but they are designed to complement each other.
How do I apply for the Warm Homes Local Grant?
Contact your local authority's housing or energy team. There is no single national application form. Each local authority has its own delivery partner and application process. Processing times and available measures vary significantly by area.
What is the Warm Homes Agency?
The Warm Homes Agency is a new government body that will oversee delivery of the Warm Homes Plan from April 2027. It will manage the Consumer Loans Scheme, coordinate with local authorities on the Local Grant, and provide a single point of contact for homeowners and landlords seeking support.
Is the 50% contribution per property or per measure?
Per property. Once a landlord has had one property fully funded through the Local Grant, every subsequent property in their portfolio requires a 50% cost contribution from the landlord, regardless of which measures are installed. The contribution applies to the total grant value, not individual measures.