The Boiler Upgrade Scheme (BUS) is a government grant programme administered by Ofgem that provides upfront capital grants to help cover the cost of installing low-carbon heating systems. It replaced the Renewable Heat Incentive (RHI) in April 2022 and has been extended to run until March 2030. Per DESNZ guidance (2026), the scheme budget for 2026-27 is £400m.

Unlike some energy efficiency schemes, the BUS is open to all property owners, including private landlords, regardless of income. The grant is paid directly to the MCS-certified installer and deducted from your installation bill, so you never handle the grant money yourself.

The scheme covers four technologies: air source heat pumps (ASHPs), ground source heat pumps (GSHPs), biomass boilers, and, from 28 April 2026, air-to-air heat pumps. Heat pumps are by far the most popular choice and the most relevant for landlords looking to hit the EPC C minimum standard. For a full overview of all available funding, see our landlord grants guide.

The Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026 came into force on 28 April 2026. These are the most significant changes since the scheme launched. Per GOV.UK guidance (April 2026), four substantive amendments affect landlords directly.

This is a common point of confusion. Many landlords assume that energy efficiency grants are only for owner-occupiers or for tenants on benefits. That is not the case with the Boiler Upgrade Scheme. The BUS was specifically designed to be property-owner-agnostic: anyone who owns an eligible property can claim, whether it's their home, a holiday let, or a buy-to-let rental.

For landlords, this is particularly powerful because you can claim the grant for every eligible property in your portfolio. A landlord with five gas-heated rental properties could claim up to £37,500 in total grants (£7,500 x 5). If those properties use oil or LPG and the July 2026 uplift proceeds, that rises to £45,000 (£9,000 x 5). The only condition is that each property must meet the individual eligibility requirements.

The BUS provides fixed upfront grants that are deducted directly from your installation invoice. There is no claiming back after the fact. The discount comes off the top, so you only pay the remaining balance. Grant amounts were last updated on 28 April 2026 when air-to-air heat pumps were added.

To qualify for the Boiler Upgrade Scheme, your property must meet certain criteria. These apply to both the property itself and to how the installation is carried out. There are no landlord-specific financial eligibility tests. If the property qualifies, you qualify. The criteria below reflect the 28 April 2026 amendments.

The BUS is a targeted grant with specific exclusions. Landlords often ask about these scenarios. Here is a clear breakdown of what is not eligible.

The BUS application process is largely handled by your installer, not by you directly. Your main job is to choose a good MCS-certified installer. Here is exactly what happens, from start to finish. Per Ofgem Property Owner Guidance V5 (March 2026), the typical timeline from first enquiry to completed installation is 6 to 12 weeks.

Landlords frequently compare the cost of a BUS-funded heat pump against simply replacing the gas boiler. Here is a direct comparison for a typical 3-bed semi-detached rental property, showing upfront cost, annual running cost, and long-term value.

For landlords, the EPC impact of a heat pump is arguably as important as the grant itself. With the 2030 EPC C deadline approaching, any measure that moves your property toward or beyond a C rating has long-term compliance value. Heat pumps are one of the most powerful single measures available.

The EPC score improvement from a heat pump comes from two factors: lower carbon emissions (heat pumps produce roughly one-third the CO2 of a gas boiler) and, increasingly, from the updated SAP 10.2 calculation methodology which weights electricity more favourably than older models. Properties assessed before 2025 may see a larger improvement when re-assessed using the current methodology.

For landlords targeting the 2030 EPC C minimum standard, a heat pump installed via the BUS can be a decisive single measure, particularly when combined with loft and cavity wall insulation. Use our EPC predictor tool to see exactly what improvement is predicted for your property type. For a broader view of upgrade costs, see the costs and funding hub.

Landlords often worry that switching to a heat pump will increase their tenants' energy bills, particularly given that electricity costs more per kWh than gas. In practice, well-installed heat pumps are typically 3 to 4 times more efficient than gas boilers, meaning they use far less energy for the same amount of heat. Per Energy Saving Trust data (2026), a well-installed ASHP in a properly insulated home costs less to run than a gas boiler.

A common concern for landlords is whether installing a heat pump requires planning permission. The good news: since May 2025, the rules have been significantly relaxed. Per the Planning Portal (2026), most heat pump installations on houses now fall under permitted development and do not need planning permission.

The Boiler Upgrade Scheme was originally set to end in 2025 but has been extended to March 2030. As of 28 April 2026, this extension is formally legislated. This is excellent news for landlords because it aligns the grant directly with the EPC C compliance deadline. You can plan your upgrade timeline to suit your tenancy calendar and portfolio cash flow, rather than rushing to beat an arbitrary grant deadline.

On 9 March 2026, the government confirmed the Home Energy Model (HEM) delay to H2 2027. Many landlords are asking: if the EPC scoring methodology is changing, should I wait before investing in a heat pump?

The answer, for most landlords, is no. Here is why:

A common concern among landlords with older Victorian terrace, Edwardian, or 1930s to 1960s properties is whether heat pumps can work effectively. The short answer is yes, with proper installation design. Modern heat pumps can deliver comfortable temperatures in most UK housing stock. The 2025 planning rule changes (1-metre boundary rule removed) are particularly helpful for terraced houses with narrow side passages.