Boiler Upgrade Scheme for Landlords: Complete Guide (2026)
Everything landlords need to know about the £7,500 heat pump grant — eligibility, how to apply, EPC impact, and whether to act now or wait for HEM in 2027
Air source heat pump professionally installed outside a British semi-detached home
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The Boiler Upgrade Scheme for landlords is one of the most valuable grants available in the UK right now — offering up to £7,500 off the cost of a heat pump installation. If you own a rental property on gas, oil, or LPG heating, you can claim this grant for every eligible property in your portfolio, with no income test and no cap on the number of claims. The scheme runs until March 2030.
This guide answers the #1 question landlords ask — "Is the Boiler Upgrade Scheme available to landlords?" — and covers everything you need to know: grant amounts, eligibility rules, the step-by-step application process, the EPC impact, and a 2026-specific section on how the Home Energy Model delay to 2027 affects the BUS timing decision.
What is the Boiler Upgrade Scheme?
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.
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 three technologies: air source heat pumps (ASHPs), ground source heat pumps (GSHPs), and biomass boilers. Heat pumps are by far the most popular choice and the most relevant for landlords looking to hit the EPC C minimum standard.
BUS at a Glance
- Who administers it: Ofgem on behalf of the UK government
- Who applies: Your MCS-certified installer applies on your behalf
- How it works: Grant deducted upfront from your installation cost
- Available in: England and Wales (Scotland has its own scheme)
- Income test: None
- Portfolio limit: No — claim for every eligible property you own
Can Landlords Apply for the Boiler Upgrade Scheme?
Yes — landlords are fully eligible for the Boiler Upgrade Scheme
Private landlords, portfolio landlords, HMO landlords, and limited company landlords can all claim the BUS grant. There is no tenancy test, no income means-test, and no restriction based on your tenant's situation. The grant applies to the property, not to who lives in it.
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 × 5). The only condition is that each property must meet the individual eligibility requirements.
How Much Does the Boiler Upgrade Scheme Pay?
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.
BUS Grant Amounts by Technology
| Improvement | Low Estimate | High Estimate |
|---|---|---|
| Air source heat pump (ASHP)Most common option for rental properties. Typical total cost £10,000–£15,000 before grant. | £7,500 | £7,500 |
| Ground source heat pump (GSHP)Requires garden space for ground loops. Total cost £18,000–£35,000 before grant. | £7,500 | £7,500 |
| Water source heat pumpRare. Requires water source (river, lake, or borehole). | £7,500 | £7,500 |
| Biomass boilerRural properties only. Requires dedicated fuel storage space. Not suitable for most urban rentals. | £5,000 | £5,000 |
Grant amounts are fixed. You pay: total installation cost minus grant. Grant is paid directly to your installer by Ofgem.
Boiler Upgrade Scheme Eligibility Criteria for Landlords
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.
Property Must…
- Have a valid EPC certificate (any rating, issued within last 10 years)
- Currently use a fossil fuel heating system (gas, oil, or LPG)
- Be located in England or Wales
- Have space for the heat pump unit (typically 1m × 1m outside)
- Not be a new-build completed within the last 2 years
Installation Must…
- Be carried out by an MCS-certified installer
- Be completed within 3 months of voucher issue
- Replace (not supplement) the existing fossil fuel system
- Be registered with MCS on completion
- Have a quote showing the grant deducted upfront
What the Boiler Upgrade Scheme Does NOT Cover
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.
Gas boilers, oil boilers, and electric storage heaters
The BUS only covers heat pumps (air, ground, water source) and biomass boilers. Installing a new gas or oil boiler — even an efficient A-rated condensing boiler — does not qualify. Electric storage heaters are also excluded.
New-build properties (under 2 years old)
Properties completed within the last 2 years are not eligible. New builds are expected to incorporate low-carbon heating from the outset under the Future Homes Standard.
Properties already fitted with a heat pump
If a property already has a working heat pump, it is not eligible — even if it is old or inefficient. The grant is only for replacing fossil fuel systems.
Properties in Scotland
Scotland has its own Home Energy Scotland scheme with different eligibility rules and grant amounts. The BUS only applies in England and Wales.
DIY installations or non-MCS installers
The installation must be carried out by an MCS-certified company. There are no exceptions — if your installer is not MCS-certified, your claim will be rejected.
Accompanying works (insulation, radiators, pipework upgrades)
The BUS grant only covers the heat pump itself. Associated works like new radiators, underfloor heating, hot water cylinders, or insulation improvements are not covered by the grant — you pay for these separately. However, ECO4 may fund insulation and the Warm Homes Local Grant can cover a wider package of measures.
Biomass boilers in urban areas
Biomass boilers are only eligible in rural areas that are off-gas or where biomass is appropriate given local air quality. Most urban landlords will be restricted to heat pumps only.
How to Apply for the Boiler Upgrade Scheme — Step by Step
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 Full Application Process
- 1Check your EPC is valid
Your property must have a valid EPC (issued within the last 10 years). If yours has expired or you don't have one, book an EPC assessment before anything else. Any rating qualifies.
- 2Use the grant checker to confirm eligibility
Run your property through our free grant checker tool to see which schemes your property qualifies for, including the BUS.
- 3Get quotes from at least 3 MCS-certified installers
Find MCS-certified heat pump installers at mcscertified.com. Get at least 3 quotes — not just for price comparison but also to evaluate their system design and heat loss calculations.
- 4Installer surveys the property
A good installer will visit the property to assess heat loss, check the existing heating system, and design an appropriately sized heat pump. Be wary of installers quoting without a survey.
- 5Accept a quote that shows the BUS grant deducted
The quote should clearly state the full installation cost and then show the £7,500 grant applied, leaving your net balance. You should never pay the full price and wait for a rebate.
- 6Installer applies to Ofgem for your voucher
Once you accept the quote, your installer submits the voucher application to Ofgem on your behalf. Ofgem typically issues the voucher within a few weeks.
- 7Voucher issued — 3-month window to complete works
Once issued, the voucher is valid for 3 months. Work must be fully completed within this period. Vouchers can sometimes be extended, but do not rely on this.
- 8Heat pump installed and registered with MCS
Installer completes the work and registers the installation with MCS. This is required for the grant to be paid.
- 9You pay the balance — installer receives the grant
You pay the installer the agreed net amount (total cost minus £7,500). Ofgem then pays the £7,500 grant directly to the installer. You are done.
How the Boiler Upgrade Scheme Affects Your EPC Rating
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.
EPC Impact: What to Expect
Typical EPC Point Gain
10–25 points
Varies by property type, insulation level, and current heating system
Common Outcome
D-rated property (55–68) moves to high D or C (70+) with heat pump alone
Why Heat Pumps Score Well
EPC methodology credits heat pumps for low carbon emissions, not just energy use
Updated SAP Methodology
Post-2025 SAP 10.2 changes mean heat pumps score even better than in older EPCs
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 grant checker to see exactly what EPC improvement is predicted for your property type.
Running Costs Comparison
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 3–4× more efficient than gas boilers, meaning they use far less energy for the same amount of heat.
| System | Efficiency | Fuel Cost/kWh | Annual Cost* |
|---|---|---|---|
| Gas boiler (old) | 75–80% | 7p | £1,100–£1,300 |
| Gas boiler (new A-rated) | 90–94% | 7p | £900–£1,100 |
| Air source heat pump | 280–350% | 22p | £700–£900 |
| Ground source heat pump | 350–450% | 22p | £550–£750 |
*Estimated annual heating cost for a typical 3-bed semi-detached house (12,000 kWh demand). Actual costs vary by insulation level, tariff, and usage.
Extended to 2030
The Boiler Upgrade Scheme was originally set to end in 2025 but has been extended to March 2030. 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.
Why the Extension Matters for Landlords
- Plan around tenancies: Schedule work during void periods or with good tenant notice
- Coordinate with EPC deadline: Align installation with your 2030 MEES compliance strategy
- Improving technology: Heat pump efficiency and cold-weather performance improve year-on-year
- Spread portfolio upgrades: No need to upgrade all properties at once — phase them over 4 years
HEM Delay to 2027: Does This Change the BUS Calculation?
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 — and here is why:
Heat pumps score even better under HEM
Under the new Home Energy Model, heat pumps and solar panels become the primary route to EPC C for most properties. If anything, installing a heat pump now future-proofs your property under both the current RdSAP and the incoming HEM methodology.
Your current EPC C remains valid
A current EPC C under RdSAP 10 will be accepted for MEES compliance even after HEM launches. You will not need to get a new EPC simply because the methodology changed — only when you next renew or sell.
Waiting carries real risks
Installer capacity will tighten significantly from 2027 onwards as the 2030 deadline approaches. Landlords who wait until 2028–2029 risk 6-month lead times, premium pricing, and rushed installations. The BUS grant itself runs to 2030 but the practical window to get quality work done at current prices is 2025–2027.
BUS + HEM: The Landlord Decision Matrix
| Your Situation | Recommended Action |
|---|---|
| Property currently rated D or E on gas heating | Apply for BUS now — heat pump will move you to C under both RdSAP and HEM |
| Property already rated C and recently assessed | Wait until post-HEM assessment — you may need solar to maintain C under new metrics |
| Solid wall property (Victorian, Edwardian) | Act now — heat pump + insulation package is the right path regardless of HEM |
| Leasehold flat with shared heating | Complex — freeholder consent needed. Read the leasehold flat guide first |
Do Heat Pumps Work in Older Rental Properties?
A common concern among landlords with older Victorian terrace, Edwardian, or 1930s–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.
Making Heat Pumps Work in Older Rental Properties
- Correct sizing: Heat pumps must be sized based on a proper heat loss calculation for the property, not just by replacing the old boiler's kW rating.
- Insulation first where possible: Addressing loft and cavity wall insulation (potentially free via ECO4) before installation reduces the required heat pump size and improves efficiency.
- High-temperature heat pumps: Newer models can deliver flow temperatures of 65–70°C, suitable for existing radiator systems without full radiator replacement.
- Oversized radiators: Upgrading radiators in the key rooms (living room, bathroom) rather than all rooms can dramatically reduce the upgrade cost.
Boiler Upgrade Scheme for Landlords — FAQ
Can landlords claim the Boiler Upgrade Scheme?
Yes. Private landlords — including individual buy-to-let landlords, portfolio landlords, HMO landlords, and limited company landlords — are all eligible for the Boiler Upgrade Scheme. The grant is based on property eligibility, not on who owns it or who lives in it. There is no income means-test and no requirement linked to tenant circumstances.
Does the Boiler Upgrade Scheme apply to rental properties?
Yes. The scheme covers rental properties in the same way as owner-occupied homes. The property simply needs to meet the standard eligibility criteria: valid EPC, existing fossil fuel heating, located in England or Wales, not a new-build, and installed by an MCS-certified contractor.
How do I make a Boiler Upgrade Scheme application as a landlord?
You do not apply directly — your MCS-certified installer applies to Ofgem on your behalf. Your steps are: check your EPC is valid, get 3 quotes from MCS installers, accept the best quote (which should show the grant deducted), and let the installer handle the paperwork. The grant is paid directly to the installer, so you only pay the net balance.
Can I claim the Boiler Upgrade Scheme on multiple rental properties?
Yes — there is no limit on the number of claims you can make. Each eligible property in your portfolio can receive the full grant amount (£7,500 per heat pump). A landlord with five eligible properties could claim up to £37,500 in total. Each claim is processed independently and each property must meet eligibility criteria in its own right.
Does the Boiler Upgrade Scheme cover HMO properties?
Yes, HMOs (Houses in Multiple Occupation) are eligible provided the property is a single dwelling with a single heating system. Schemes that heat multiple units via one plant room may have different treatment — discuss with your installer. The HMO must have a valid EPC and meet all standard eligibility criteria.
What EPC rating do I need to qualify for the Boiler Upgrade Scheme?
Any EPC rating qualifies — A through G. The scheme has no minimum or maximum EPC requirement. You simply need a valid, in-date certificate. Even if your property is rated F or G, you can still access the BUS grant to install a heat pump, potentially in combination with other improvement measures.
Will a heat pump installed via BUS definitely give me an EPC C?
Not guaranteed, but likely for many properties. Heat pumps typically improve EPC scores by 10–25 points. A property rated D65 could reach C75+ with a heat pump alone. However, poorly insulated properties rated E or F may still fall short of C even after a heat pump. The safest approach is to combine a heat pump with insulation measures. Use our grant checker to model your specific property.
Can I use the BUS if the property is currently tenanted?
Yes. The property does not need to be vacant for you to claim. However, heat pump installation typically requires the heating to be off for a day or more, and there may be some disruption to the property. Most landlords schedule installations during a void period or with advance notice to tenants and written consent. The tenant's income or benefit status is completely irrelevant to BUS eligibility.
Is the Boiler Upgrade Scheme taxable income for landlords?
The BUS grant is not treated as rental income. However, it reduces your capital expenditure on the installation. The tax treatment of the remaining net cost (your out-of-pocket spend) depends on whether the installation is treated as a capital improvement or a revenue expense. This is a complex area — speak with an accountant familiar with property tax before proceeding.
Can I combine the Boiler Upgrade Scheme with other grants?
Yes — the BUS can be used alongside other schemes for different measures. For example, you can use ECO4 to fund insulation improvements alongside a BUS heat pump installation. The Warm Homes Local Grant covers a broader package but may not be stackable with BUS on the same property. Confirm compatibility with your local authority and installer before committing.
Your Next Steps
- 1
Check your current EPC
You need a valid EPC to apply. Check it is in date (within 10 years). If not, book an assessment before anything else.
- 2
Run our free grant checker
See which grants your property qualifies for, including BUS, ECO4, and Warm Homes — and get an estimate of the EPC improvement a heat pump would deliver.
- 3
Get at least 3 quotes from MCS-certified installers
Use mcscertified.com to find local heat pump installers. Compare system design, not just price.
- 4
Consider insulation alongside heat pump
Check whether ECO4 can fund loft or cavity wall insulation at little or no cost to you — this improves heat pump performance and EPC score.
- 5
Understand your MEES obligations
Read our MEES regulations guide to understand exactly what the 2030 EPC C deadline means for your portfolio and the penalties for non-compliance.
Sources
Related Articles
ECO4 for Landlords
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Warm Homes Local Grant
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Home Energy Model Delayed to 2027
How the HEM delay affects your upgrade timing — and why heat pumps are still the right move.
Upgrade Now or Wait for HEM?
A decision framework for landlords weighing up BUS now vs waiting for the new EPC metrics.
MEES Regulations Guide
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