Landlord Heat Pump Grants and Funding in 2026

The short version

Four routes matter to a landlord in 2026, and they work in different ways. Two are grants, one is a loan and one is a tax rate. This digest summarises each and points to the page with the detail.

Route	What you get	Who can use it	Key limit
Boiler Upgrade Scheme	£7,500 (air to water or ground source); £2,500 air to air; £5,000 biomass	Owners, including landlords of rented homes (England and Wales)	One grant per property; no hybrids; installer applies
Boiler Upgrade Scheme off-gas uplift	£9,000	Oil or LPG homes with no mains gas	21 July 2026 to 31 March 2027
Warm Homes Local Grant	Funded measures, via the local authority	Lower-income households, EPC D to G, England only	Landlord contributes 50% from the second property
Warm Homes Loan Scheme	Loan up to £20,000 for a heat pump	Private landlords and owner-occupiers	A lender loan, not a grant
0% VAT	VAT removed on installation	Anyone buying installed heat pumps or insulation	Until 31 March 2027, then 5%

Boiler Upgrade Scheme

The scheme is the simplest route for most rentals. The eligibility rules state that you must own the property, including one you rent to tenants, and the heat pump must replace existing heating. Hybrids are excluded, and so are social housing, most new builds and properties already funded for a heat pump or biomass boiler. The installer applies for you, the installation must be done within 120 days of applying, and the installer must be MCS certified. Detail: Boiler Upgrade Scheme for landlords.

Warm Homes Local Grant

This is England only and runs through local authorities. It targets lower-income households living in EPC D to G homes that are privately owned or privately rented. A landlord’s first property can be fully funded, and from the second property the landlord pays 50%. Landlords declare they will not raise the rent because of the funded work. EPC F and G rentals need a registered exemption first, because public money cannot be used to meet the legal minimum. The window closes on 31 March 2028. Detail: Warm Homes Local Grant for landlords.

Loans and the end of ECO4

The Warm Homes Loan Scheme lets private landlords borrow up to £20,000 for an air source heat pump, £10,000 for air to air and £35,000 for ground source. The government pays lenders up to 20% of the loan, passed on through a lower rate. The rules do not promise a zero rate, so compare the actual rate. The scheme is launching in phases from September 2026.

ECO4 closes on 31 December 2026, and GBIS closed on 31 March 2026. If either was part of your plan, check landlord boiler grants for what applies now.

VAT

VAT is 0% on installing heat pumps and insulation in homes until 31 March 2027, then 5% from 1 April 2027 under VAT Notice 708/6. On a £12,000 job, that difference is real, but it is a reason to plan well, not to rush a poor decision.

How the cost is likely to look

The Energy Saving Trust gives around £12,000 as a typical air source heat pump price before any grant. With the £7,500 grant, that leaves around £4,500 for a qualifying property. DESNZ reports a median installed cost of £12,908 for grant-funded air to water pumps in 2026 Q2, including the grant value. Your own quotes will vary with the house, the radiators and the cylinder.

Funding and the EPC cost cap

Planned rules would let landlords count upgrade spend towards a £10,000 cost cap from 1 October 2025. The government response of 21 January 2026 says Boiler Upgrade Scheme funding will not count towards the cap, while other government scheme funding can. The regulations are not yet laid, so the final rule may differ. Read the cost cap article before relying on it.

Where to go next

The pillar page grants and funding keeps the full set of rules and is updated as they change. For a rough figure on your own property, use the heat pump landlord calculator. If you want firms to contact you, the quote page sends your enquiry to relevant independent firms, with no charge and no obligation.