Boiler Upgrade Scheme for Landlords

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 started on 23 May 2022 and has been extended to run until March 2030. DESNZ confirmed in April 2026 that the budget for 2026 to 2027 is £400m.

Unlike some energy efficiency schemes, the BUS is open to private landlords as well as owner-occupiers, with no income test. 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 proposed EPC C 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 all five are off the gas grid and use oil or LPG, that rises to £45,000 (£9,000 x 5) for air source or ground source heat pumps, for applications made up to 31 March 2027. 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 values were last updated on 21 July 2026, when the oil and LPG uplift took effect. Air-to-air heat pumps were added on 28 April 2026.

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.

The BUS approval rate is high when the basics are right, but rejections do happen, and a rejected voucher can delay a portfolio upgrade by weeks. Because your installer applies on your behalf, most avoidable failures come down to installer choice and timing. Here are common reasons a claim fails, and how landlords sidestep each one.

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.

The BUS is not the only option, and for many landlords the right answer is a combination rather than a single scheme. The BUS pays for the heat pump. Insulation, radiators, and wider fabric works sit outside it, which is exactly where ECO4 and the Warm Homes Local Grant come in. Getting to EPC C is usually a package, so it helps to see how the routes fit together. For every option in one place, see our landlord grants overview.

For landlords, the EPC impact of a heat pump is arguably as important as the grant itself. With the proposed 2030 EPC C standard in view, 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 proposed 2030 EPC C 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. A heat pump uses far less energy for the same amount of heat: DESNZ's Warm Homes Plan says heat pumps are already around 3 times more efficient than gas boilers. Whether that wins on running cost depends on the electricity tariff and on how well the system performs, as the table below shows.

A common concern for landlords is whether installing a heat pump requires planning permission. The good news: in England, since 29 May 2025, the rules have been significantly relaxed. Most heat pump installations on houses now fall under permitted development and do not need planning permission, provided the conditions are met. These rights come from an England-only order, so check with your local planning authority in Wales.

The Boiler Upgrade Scheme regulations previously ran to 2028 and now run through to 2030, an extension legislated from 28 April 2026. This is good news for landlords because the grant now runs to the same year as the proposed EPC C standard (1 October 2030, not yet law). 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 moved the launch of its reformed EPCs to the second half of 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.