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Landlord Energy Efficiency Grants

Every grant scheme available to private landlords for EPC compliance upgrades in 2026: amounts, eligibility, and how to apply.

Landlord Energy Efficiency Grants: The Complete 2026 Guide

Don't pay full price for EPC upgrades. Multiple grant schemes can cover a significant portion, sometimes all, of the cost.

Written by EPCGuide Editorial Team
14 min read

Private landlords have three funding routes in 2026. ECO4, an obligation on energy suppliers rather than a grant, is open until 31 December 2026 for rented homes rated E to G with a tenant on qualifying benefits or LA Flex. The Boiler Upgrade Scheme pays £7,500 towards an air source or ground source heat pump, with no income means-test. Warm Homes: Local Grant runs through participating councils.

Several government schemes are open to private landlords, yet many still pay full price for upgrades that a scheme could have covered in part or in full.

With government proposing EPC C for all private rented properties from October 2030, now is the time to understand what is available. This guide covers every major scheme: who qualifies, how much you can get, and the steps to apply.

Last reviewed: October 2026

Grant Status at a Glance (2026)

SchemeStatus (2026)Max amountWho it's for
ECO4Open until 31 December 2026Varies (Ofgem sets no per-home funding level)Rented homes rated E to G, tenant on qualifying benefits or LA Flex
Boiler Upgrade SchemeOpen, new vouchers until 31 December 2029£7,500 for an air or ground source heat pumpAny landlord, no income means-test
Warm Homes: Local GrantOpen in participating councils£16,600 + £16,600 per home (cost caps, averaged across a project)EPC D to G (F and G need a registered exemption); income under £36,000, a qualifying benefit or an eligible postcode
Great British Insulation SchemeClosed (ended 31 March 2026)ClosedWas open to EPC D to G homes in set Council Tax bands, mostly for single insulation measures
EPC C Action Plan
See which grants could apply to your property
Enter your postcode for a costed route to EPC C that includes the grants you may qualify for.

Overview: What's Available

There are three grant routes open to private landlords, plus local authority top-up schemes in some areas. The Great British Insulation Scheme ended on 31 March 2026 and is listed for reference. Here is a quick comparison:

SchemeMax ValueWhat It CoversKey Eligibility
ECO4Varies (no published per-home cap)Insulation, heating, heating controlsRented home rated E to G, and tenant on qualifying benefits OR declared eligible by the council (Flex)
Boiler Upgrade Scheme£7,500 heat pump; £5,000 biomass; £2,500 air-to-airAir or ground source heat pumps, biomass boilers, air-to-air heat pumpsYou own the property and the new system replaces fossil fuel or electric heating
Warm Homes: Local Grant£16,600 + £16,600 per home (cost caps, averaged across a project)Insulation, heating, renewablesEPC D to G (F and G need a registered exemption), low-income household or eligible postcode
Great British Insulation SchemeClosed (ended 31 March 2026)Single insulation measureEPC D to G, in set Council Tax bands, or low-income and vulnerable households

ECO4: Energy Company Obligation

ECO4 is a legal obligation on large energy suppliers in Great Britain. It requires large energy suppliers to fund improvements to low-income and low-energy-efficiency homes. For landlords, this can mean free or subsidised insulation and heating upgrades.

What ECO4 Typically Covers

  • Cavity wall insulation
  • Solid wall insulation (internal or external)
  • Loft insulation
  • Underfloor insulation
  • First-time central heating systems
  • Boiler replacements (generally not in rented homes)
  • Smart heating controls
  • Heat pumps (as renewable heating)

ECO4 Eligibility Routes

Route 1: Tenant on qualifying benefits

If your tenant receives Universal Credit, Housing Benefit, Pension Credit, or certain other means-tested benefits, the rented home may qualify if it is rated EPC E, F or G.

Route 2: Council referral (ECO4 Flex)

Rented homes rated EPC E, F or G may qualify if the local council declares the household eligible under ECO4 Flex, without the tenant receiving a qualifying benefit.

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme pays a fixed grant towards low-carbon heating, and the amount depends on the technology. Off-gas-grid homes replacing an oil or LPG heating system can get £9,000 towards an air-to-water or ground source heat pump, from 21 July 2026 until March 2027. The scheme has been extended to 2030, but Ofgem cannot issue new vouchers after 31 December 2029 (SI 2022/565 reg 15(7)(c), as amended by SI 2026/390).

£7,500
Air or Ground Source Heat Pump
Grant amount
£5,000
Biomass Boiler
Grant amount
£2,500
Air-to-Air Heat Pump
Grant amount

BUS Eligibility Requirements

  • You own the property, including one you rent out to tenants
  • The heat pump replaces fossil fuel or electric (non heat pump) heating
  • Installer must be MCS certified
  • Grant paid directly to installer, reducing your invoice
  • Only one voucher can be redeemed per property
  • Landlords and homeowners both eligible

Warm Homes: Local Grant

The Warm Homes: Local Grant has been delivered through local authorities in England since April 2025 and is now part of the Warm Homes Plan. It has cost caps of £16,600 per home for energy performance upgrades and £16,600per home for low carbon heating, averaged across each council's project, for homes rated EPC D to G. Privately rented homes rated F or G need a registered exemption first.

Private landlords are included where the tenant household meets the eligibility criteria. One home per landlord can be fully funded, then the landlord pays at least 50% for each further home.

What It Covers

  • All insulation types (including solid wall)
  • Heat pumps and low-carbon heating
  • Solar panels and battery storage
  • Heating controls and smart thermostats
  • Double or triple glazing
  • Draught proofing

Eligibility at a Glance

Property must be EPC D, E, F, or G rated (F and G rentals need a registered exemption)
Household income under £36,000 (or the after housing costs threshold), or a qualifying means-tested benefit
OR home in an eligible lower-income postcode
First home per landlord fully funded; the landlord pays at least 50% from the second
Delivered by participating councils

Great British Insulation Scheme (GBIS)

GBIS has closed. According to Ofgem it began in April 2023 and ended on 31 March 2026, so it is no longer available. The details below describe how it worked. The Great British Insulation Scheme complemented ECO4 and, unlike ECO4's whole-house approach, mostly delivered single insulation measures. As well as supporting low-income and vulnerable households, it was available to homes rated EPC D to G within Council Tax bands A to D in England and A to E in Scotland and Wales.

GBIS vs ECO4

GBIS: Mostly single insulation measures, open to low-income and vulnerable households and to EPC D to G homes in set Council Tax bands
ECO4: Whole-house approach; rented homes must be rated E to G

Local Authority and Devolved Nation Grants

Beyond national schemes, many local authorities operate their own grant programmes, funded by central government allocations or council budgets. These can supplement national schemes or provide funding for properties or works not covered elsewhere.

England

Local councils deliver the Warm Homes: Local Grant and may have additional housing improvement funds. Check your council's housing or energy efficiency pages.

Scotland

Home Energy Scotland's Private Rented Sector Landlord Loan offers up to £15,000 per property for energy efficiency improvements, interest-free for landlords with up to 5 properties and 3.5% APR for 6 or more. Visit homeenergyscotland.org.

Wales

The Welsh Government's Warm Homes Nest scheme can improve privately rented homes where the tenant meets its benefit or health criteria and the landlord gives permission. Eligibility criteria differ from the English schemes. Visit gov.wales and search for Nest.

Combining Multiple Grants (Stacking)

It is sometimes possible to use more than one scheme on the same property, dramatically reducing your out-of-pocket costs. The key is understanding which schemes can and cannot be combined.

Generally Compatible

  • ECO4 + BUS: Ofgem's ECO4 guidance gives insulation through ECO4 and heating through BUS as an example, installed in sequence
  • ECO4 + WHLG (different measures): ECO4 for one measure, Warm Homes: Local Grant for another, installed before the ECO4 project starts or after it ends, subject to council rules

Generally Not Compatible

  • ECO4 + WHLG for same measure: Cannot claim two grants for the same improvement
  • Two schemes for the same measure: Only one scheme can fund each improvement
  • BUS + another heating grant: a heat pump that has received any other grant from public funds is ineligible for BUS

Grants and the Cost Cap

The cost cap is the maximum a landlord has to spend on EPC improvements before they can register an exemption and keep letting legally. It is £3,500 including VAT under the rules in force, and government has proposed £10,000 alongside the EPC C standard planned for 2030. The detail most landlords miss: under the rules in force, grant funding does not use up the cap. Under the proposed £10,000 cap, Boiler Upgrade Scheme money would not count, but other third-party funding, such as ECO4 or local grants, could.

In practice, under the rules in force, this means grants extend your total improvement budget well beyond the cap. Secure grant funding for the expensive items (heating, insulation), then use your personal cap allowance on the smaller measures grants rarely cover: glazing, draught-proofing, smart controls.

Tax Relief on EPC Improvements

Grants are not the only way to bring the cost down. HMRC lets landlords deduct some improvement costs from 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: swapping a gas boiler for an equivalent gas boiler is a repair, fully deductible
  • Draught-proofing replacement: where improvement comes only from broadly equivalent modern materials, the cost normally remains revenue expenditure (HMRC Property Income Manual, PIM2030)
  • Double glazing replacing single glazing: PIM2030 gives single glazing replaced with double glazing as an example of an alteration due to advances in technology that is generally an allowable repair

Capital expenditure (not deductible against rental income)

  • New insulation where there was none before (loft, cavity wall, solid wall, floor) is generally an improvement, not a repair
  • Heat pump installation is not always capital: the government response of 21 January 2026 says heat pumps "may now be considered a maintenance or repair cost in certain circumstances", so check with your accountant
  • Solar PV panels (a new asset, generally capital)

Capital improvements cannot be offset against rental profits in the year you make them, but they can be set against capital gains tax when you sell.

Grant-funded improvements cannot be claimed as an expense at all, because you did not pay for them. Our full tax relief guide covers every improvement category and the three routes to recovering costs.

Five Mistakes Landlords Make with Grants

Assuming tenants need to be on benefits

ECO4 Flex lets your council refer the property on low-income or cold-home grounds without a formal benefit claim, and the Warm Homes Local Grant has an LA Flex pathway for low-income tenants who are not on formal benefits. GBIS previously offered a Council Tax band route, but that scheme closed on 31 March 2026.

Waiting until late 2026 for ECO4

ECO4 runs to 31 December 2026 and the government has confirmed no successor supplier obligation. Suppliers must deliver measures by then, so leaving it to Q4 2026 risks missing the window.

Installing a heat pump before insulating

Ofgem notes that heat pumps perform best in a well-insulated home. If your tenant qualifies for ECO4 insulation, plan the order of works with your installer rather than fitting the heat pump first by default.

Ignoring the cost cap interaction

Under the rules in force, grant-funded work does not use up the £3,500 cap. Under the proposed £10,000 cap, Boiler Upgrade Scheme money would not count, but other third-party funding, such as ECO4 or local grants, could. Plan grant applications around the most expensive measures, then spend your cap allowance on everything else.

Not keeping receipts from October 2025

Government has proposed that qualifying spend towards the cost cap counts from 1 October 2025. That is not law yet, so the date could move, but improvements paid for without documentation may not count towards your cap if it is made as drafted.

How to Apply: Step-by-Step

  1. 1

    Get an up-to-date EPC

    An EPC is valid for 10 years. ECO4 and the Warm Homes: Local Grant look at the property's rating, and a recent assessment gives you an accurate score and up-to-date recommendations. The Boiler Upgrade Scheme no longer requires one.

  2. 2

    Check your eligibility

    Use our grant checker tool to identify which schemes your property qualifies for, based on EPC rating, location, and tenant circumstances. Different routes have very different requirements.

  3. 3

    Contact an approved installer

    For ECO4, work through an energy company or TrustMark-registered ECO4 installer. For BUS, the installer must be MCS certified. Ask them to assess grant eligibility as part of their initial survey.

  4. 4

    Get your tenant's co-operation (if needed)

    For ECO4 the tenant's circumstances decide eligibility, and the supplier must get your permission as landlord. The Warm Homes: Local Grant may also require evidence of the household's income or benefits.

  5. 5

    Plan the order of works

    Ofgem's ECO4 guidance requires measures from another scheme, including BUS, to be installed either before the ECO4 project starts or after it is completed. Plan sequencing carefully to avoid losing grant eligibility.

  6. 6

    Commission the works

    Grants are generally paid directly to the installer, reducing your invoice. You do not usually receive the grant as cash; your contribution is simply lower.

  7. 7

    Get a new EPC after works

    Once improvements are complete, commission a new EPC assessment to confirm your new rating. This is essential for demonstrating compliance and updating the EPC register.

Not Sure Which Grants You Qualify For?

Use our free grant checker tool. Enter your property details and we'll show which schemes are likely available to you.

Frequently Asked Questions

Can landlords get grants for EPC improvements?

Yes. Two government grants are open to private landlords: the Boiler Upgrade Scheme (£7,500 towards an air source or ground source heat pump, with lower amounts for a biomass boiler or an air-to-air heat pump) and the Warm Homes: Local Grant (cost caps of £16,600 per home for energy performance measures and £16,600 for low carbon heating, averaged across each council's project). ECO4 is not a grant but an obligation on energy suppliers, who can fund free or subsidised insulation and heating until 31 December 2026. Eligibility criteria vary by scheme and local authority area.

How much can a landlord get in grants for EPC upgrades?

It depends on the property, the measures and which schemes are combined. Ofgem's guidance sets no per-home ECO4 funding cap: it depends on the measures and the supplier. The Warm Homes: Local Grant has cost caps of £16,600 per home for energy performance upgrades and £16,600 for low carbon heating, averaged across each council's project. The Boiler Upgrade Scheme adds £7,500 towards an air source or ground source heat pump. Stacking schemes is possible in some cases.

What is ECO4 and how does it work for landlords?

ECO4 (Energy Company Obligation 4) requires large energy suppliers to fund energy efficiency improvements. Rented homes rated EPC E, F or G may be eligible for free or subsidised insulation, heating upgrades and other improvements if the household receives a qualifying benefit or the council declares it eligible under ECO4 Flex. Landlords must give permission for works. A rented home's package must include at least one of solid wall insulation, first-time central heating, a district heating connection or renewable heating.

Can landlords claim the Boiler Upgrade Scheme?

Yes. The Boiler Upgrade Scheme (BUS) provides £7,500 towards an air source or ground source heat pump, £5,000 towards a biomass boiler and £2,500 towards an air-to-air heat pump. Landlords are eligible, including for a property they rent out to tenants. The scheme no longer requires a valid EPC (removed 28 April 2026), and the loft and cavity wall insulation condition was removed in May 2024. The grant is paid directly to the registered MCS installer.

Can you combine multiple EPC grants on the same property?

Sometimes, but never for the same measure. Ofgem's ECO4 guidance says ECO4 funding cannot be blended with other government schemes or grants, including the Boiler Upgrade Scheme and the Warm Homes: Local Grant, and that measures from another scheme must be installed either before the ECO4 project starts or after it ends. A home can have insulation through ECO4 and a heat pump through the Boiler Upgrade Scheme. The Great British Insulation Scheme ended on 31 March 2026, so it is no longer available to combine. Always check current rules as schemes update.

Is ECO4 still available in 2026?

ECO4 is the current phase of the Energy Company Obligation scheme and was extended to run until 31 December 2026. Government has decided to bring supplier obligations to a close, so no supplier-funded successor is planned. Suppliers must deliver measures by 31 December 2026, so apply well before the deadline. Availability depends on local energy company activity in your area. Some installers still have ECO4 funding available for eligible properties, so it is worth checking now before funding runs out.

What is the Great British Insulation Scheme?

The Great British Insulation Scheme (GBIS) complemented ECO4 and mostly delivered single insulation measures. According to Ofgem it began in April 2023 and ended on 31 March 2026, so it is no longer available. It supported low-income and vulnerable households, and was also open to homes rated EPC D to G in Council Tax bands A to D in England, or A to E in Scotland and Wales.

Do I need to tell my tenants about grant work?

Yes. Tell your tenant before any work starts. Under ECO4, eligibility is based on the tenant's circumstances, not yours, and the supplier must get your permission before fitting measures in a rented home.

Sources

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