Landlord boiler grants in 2026: what money actually exists
No scheme pays for a new gas or oil boiler in a rental
No scheme we could verify funds a like-for-like gas or oil boiler for a landlord. The Boiler Upgrade Scheme pays for heat pumps and biomass boilers. Warm Homes: Local Grant funds non-fossil measures such as insulation, solar and heat pumps. The Warm Homes Loan Scheme finances heat pumps, solar and similar measures. A new gas boiler is paid for by you.
ECO4 is the one scheme where GOV.UK mentions boiler repair or replacement for eligible households, so it is worth a call, but it is tenant qualified, needs your permission, closes on 31 December 2026, and this guide could not confirm from primary guidance which heating measures it will fund in a given let property. Do not plan a purchase around it.
That is the honest starting point. What follows maps what does exist so you can see whether any of it fits a given property.
The routes at a glance
| Route | What it pays | Who qualifies | Status |
|---|---|---|---|
| Boiler Upgrade Scheme | £7,500 air source or ground source, £2,500 air to air, £5,000 biomass; £9,000 on oil or LPG with no mains gas | Owner of the property, including a let property | Installer applies |
| Warm Homes: Local Grant | Fully funded first property, 50% landlord contribution after | Low-income tenant, EPC D to G, England | Council run, closes 31 March 2028 |
| Warm Homes Loan Scheme | Loan up to £20,000 (air source), £10,000 (air to air), £35,000 (ground source) | Private landlords, no income threshold | Lender sets rate, phased launch from September 2026 |
| ECO4 | Supplier funded measures | Tenant qualifies, owner’s permission | Closes 31 December 2026 |
| 0% VAT | VAT removed on installation | Installs in homes | Until 31 March 2027, then 5% |
The top three are explained in more detail on their own pages: Boiler Upgrade Scheme for landlords and Warm Homes: Local Grant for landlords. The grants overview compares them side by side.
The heat pump grant
The Boiler Upgrade Scheme is the largest direct payment. GOV.UK says you must own the property, including a property you rent out, and be replacing a fossil fuel heating system. You get £7,500 for an air source or ground source heat pump, and £9,000 only where oil or LPG is replaced and the property has no mains gas connection. The extra £1,500 is listed from 21 July 2026 to 31 March 2027.
Your installer applies for you and must install within 120 days. Social housing, most new builds and properties already funded for a heat pump are excluded. There is no hybrid option.
Council funding when the tenant has a low income
Warm Homes: Local Grant is the route most landlords miss, because the starting point is the tenant, not the landlord. A council in England assesses the household, checks the EPC and arranges the work. The first property a landlord has upgraded is fully funded, and later ones need a 50% landlord contribution. The landlord signs a declaration not to raise the rent as a direct result of the funded work.
A rental rated EPC F or G needs a registered exemption before it can qualify, because public money cannot be used to meet the legal minimum. It is not a nationwide entitlement: councils run it locally and have to manage demand, so a council may prioritise some households. Full detail is on the Warm Homes: Local Grant page.
ECO4: closing, tenant-led
ECO4 runs until 31 December 2026 and GBIS closed on 31 March 2026. For a private rental, GOV.UK says the property must be rated E, F or G and you need the owner’s permission for work, so the landlord’s consent is the gate. The tenant normally begins the application, usually through the council or a participating energy supplier, and qualification depends on the tenant’s circumstances rather than yours.
With so little time left, a landlord whose tenant already wants to apply should say yes or no quickly. Check the scheme’s own pages, and the council, for what it will cover in your property before agreeing to anything.
A loan, if you need to bridge the cost
The Warm Homes Loan Scheme is a loan from participating lenders, not a grant. Its rules list private rented sector landlords as eligible borrowers, with no income threshold, and loan caps of £20,000 for an air to water heat pump, £10,000 for air to air and £35,000 for ground source, calculated before the Boiler Upgrade Scheme grant is deducted. The government pays lenders up to 20% of the loan amount, which has to be passed on through a lower rate, but the rules do not promise a zero rate. Lenders do their own credit and affordability checks and may add their own conditions, so you may not be accepted. Owners of multiple properties may apply for a loan for each.
The scheme rules say a BUS applicant can borrow to cover installation costs above the grant. Launch is phased from September 2026, so availability depends on which lenders have joined.
VAT and tax
The VAT rate on installing heat pumps and insulation in homes is 0% until 31 March 2027, and 5% from 1 April 2027 (HMRC VAT Notice 708/6). The Ofgem price cap also carries no VAT on electricity from 1 October 2026 to 31 March 2027, while gas carries 5%.
How a landlord treats the cost for income tax is a separate question for an accountant. This guide does not give tax advice.
How this connects to the EPC rules
Grants do not change the legal position. Today a let property in England and Wales needs a minimum EPC of E, with a cost cap of £3,500 including VAT. The planned rule is EPC C by 1 October 2030 with a £10,000 cap per property, but the regulations are not made. The government response of 21 January 2026 says Boiler Upgrade Scheme funding will not count towards the planned cap and other government scheme funding can. That is published policy, but the regulations are not yet laid, so the final rule may differ. See the cost cap and exemptions guide.
When a grant is not the right reason to act
A heat pump is not the right answer for every let. If the home leaks heat, insulation first is usually cheaper and may do more for the EPC. If the boiler is working, the tenant is content and the property is on mains gas, running costs can rise at 26.32p/kWh electricity against 7.97p/kWh gas unless the heat pump runs efficiently. A grant lowers the capital cost, not the unit price. If you are weighing it, the worth it for landlords page sets out the sums.
Which route fits which property
| Your situation | Route to look at first |
|---|---|
| Off gas let on oil or LPG, owner willing to invest | Boiler Upgrade Scheme at £9,000, then a loan for the balance |
| Mains gas let in good condition, tenant on a normal income | Probably no grant needed; compare costs before changing anything |
| Tenant on a low income, EPC D to G, in England | Warm Homes: Local Grant through the council |
| Tenant already asking about ECO4 | Decide on permission now, because the scheme closes on 31 December 2026 |
| EPC F or G rental | Registered exemption first, then the council scheme |
| Gas boiler failed, tenant has no heat | Repair or replace now; grants come later |
Questions to ask anyone offering a free or heavily subsidised upgrade
Offers of free heating are common around ECO4, so check before you give permission.
- Which named scheme is paying, and can you see it on the Ofgem or GOV.UK pages?
- Is the installer on the MCS or TrustMark register? Check it yourself on the installer checking guide.
- What exactly is being fitted, and what will it do to the EPC?
- Who owns the equipment, and what do you sign?
- What happens to your tenant’s heating during the work, and who deals with any fault afterwards?
- Is any cost left for you, such as a landlord contribution or extra electrical work?
If an answer is vague, wait. A missed scheme costs less than a bad installation.
Next step
Put your property’s numbers through the heat pump landlord calculator, or send an enquiry on the quote page. Relevant independent firms contact you, with no charge and no obligation.
What landlords usually ask
My boiler is broken and the tenant has no heating. I cannot wait for a grant.
You should not wait. A grant application is not a reason to leave a tenant without heating. Repair or replace the boiler now if that is the practical answer, and keep grants for a planned upgrade. The gas safety page covers what changes if you move to a heat pump later.
Is the Boiler Upgrade Scheme not a boiler grant?
The name misleads people. It pays towards heat pumps and biomass boilers, not gas or oil boilers, and it cannot be used for a hybrid system. The full rules are on the Boiler Upgrade Scheme for landlords page.
Will taking a grant mean I cannot raise the rent?
Only for the council scheme. Warm Homes: Local Grant asks the landlord to declare they will not raise the rent as a direct result of the funded upgrades. The Boiler Upgrade Scheme pages read for this guide set no such condition. Rent decisions otherwise follow your tenancy and the law, which this page does not cover.
How the cost gets met
Most landlords end up combining a grant with their own money. These are the routes, with the condition attached to each:
- Boiler Upgrade Scheme: £7,500 towards an air-to-water or ground source heat pump, or £9,000 where oil or LPG heating is replaced in a home with no mains gas connection (until 31 March 2027); £2,500 for an air-to-air system. One grant per property, and landlords can apply as the owner.
- Warm Homes: Local Grant: for lower-income tenants in England in homes rated EPC D to G, through the council. A landlord's first property can be fully funded; from the second property the landlord contributes 50%. Landlords declare they will not raise the rent because of the funded work. Greater Manchester and West Midlands combined authority areas (including Manchester, Birmingham and Coventry) are outside the national scheme and set their own landlord terms.
- Warm Homes Loan Scheme: a lender's loan, not a grant, open to private landlords. Government pays lenders up to 20% of the loan, which must be passed on by lowering the nominal interest rate. The rules do not promise a zero rate.
- 0% VAT until 31 March 2027: installing heat pumps and insulation in homes is zero-rated until then, and 5% applies from 1 April 2027 (VAT Notice 708/6).
- Your own funds or borrowing: how an upgrade is treated for tax depends on the property and the work. This site does not give tax advice, so ask an accountant before you commit.
The dates that matter
No countdown clocks here: only the fixed dates in the published guidance, and what each one means for a landlord.
- 31 December 2026ECO4, the supplier-funded scheme, closes after its extension. If a tenant on a low income might qualify, ask about it before then.
- 31 March 2027The extra £1,500 Boiler Upgrade Scheme uplift for oil or LPG heating in a home with no mains gas connection ends, taking the grant from £9,000 back to £7,500. Zero-rated VAT on installing heat pumps and insulation also ends on the same date and 5% applies from 1 April 2027.
- 2027A statutory instrument is expected to come into force in 2027; the regulations had not been laid at the time of the government response.
- 1 October 2029A property rated EPC C or above on the Energy Efficiency Rating on an EPC lodged before 1 October 2029 stays compliant until that EPC expires.
- 1 October 2030All in-scope tenancies must meet EPC C, or hold a valid exemption, under the government's published plan.
Questions landlords ask
Is there a grant for landlords to replace a gas boiler?
Not one we could verify. The Boiler Upgrade Scheme and Warm Homes: Local Grant do not fund a like-for-like gas or oil boiler. ECO4, which closes on 31 December 2026, is supplier delivered and tenant qualified, and you should not plan a boiler purchase around it.
What grants can a landlord get for a heat pump?
The Boiler Upgrade Scheme pays £7,500 for an air source or ground source heat pump, £9,000 for oil or LPG homes with no mains gas connection, and £2,500 for air to air. See the landlord rules.
Can a landlord get a grant if the tenant is on a low income?
Possibly. Warm Homes: Local Grant, run by councils in England, can fund upgrades in a let home where the tenant meets the income criteria and the EPC is D to G. See the landlord rules.
Is there a loan for landlords instead of a grant?
The Warm Homes Loan Scheme lets private landlords borrow from participating lenders, with caps of £20,000 for an air source heat pump and £35,000 for ground source. It is a loan, not a grant, and rates and approval are set by the lender.
Is VAT zero on a heat pump for a rental?
HMRC lists a 0% VAT rate on installing heat pumps and insulation in homes until 31 March 2027, then 5% from 1 April 2027. Ask your installer how the rate applies to your property.
Is ECO4 still open to private tenants?
ECO4 runs until 31 December 2026. GOV.UK says private rental properties must be rated E, F or G and that you need the owner's permission for the work. Apply through your council or a participating supplier.
Sources
- GOV.UK, Apply for the Boiler Upgrade Scheme: check if you are eligible (read 8 October 2026)
- GOV.UK, Apply for the Boiler Upgrade Scheme: what you can get (read 8 October 2026)
- DESNZ, Warm Homes: Local Grant policy guidance for local authorities (updated June 2026; GOV.UK update 2 July 2026) (read 7 October 2026)
- DESNZ, Warm Homes Loan Scheme: scheme rules (September 2026) (read 7 October 2026)
- Ofgem, Energy Company Obligation (ECO4): scheme closing date (read 28 September 2026)
- GOV.UK, Energy Company Obligation: check if you are eligible (private rented: EPC E, F or G, owner's permission needed) (read 8 October 2026)
- HMRC, VAT Notice 708/6: energy-saving materials and heating equipment (read 7 October 2026)
- GOV.UK, Domestic private rented property: minimum energy efficiency standard - landlord guidance (updated 5 May 2026) (read 8 October 2026)
- DESNZ/MHCLG, Improving the energy performance of privately rented homes: 2025 update - government response (published 21 January 2026) (read 8 October 2026)
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