Landlords looking to improve the energy efficiency of their rental properties may be able to receive financial support through the Boiler Upgrade Scheme for landlords. The scheme is available to property owners in England and Wales, including owners who rent their properties to tenants. It can help reduce the upfront cost of replacing eligible fossil-fuel heating systems with low-carbon alternatives such as heat pumps or, in specific circumstances, biomass boilers.
For landlords, upgrading the heating system can be an opportunity to improve a property's energy performance while potentially reducing heating costs for tenants. However, it is important to understand the eligibility requirements before arranging an installation.
What Is the Boiler Upgrade Scheme for Landlords?
The Boiler Upgrade Scheme for landlords is part of the UK government's support for low-carbon heating. A landlord who owns an eligible property can apply for a grant when replacing an existing fossil-fuel or qualifying electric heating system.
The scheme currently provides grants of:
£7,500 for an air source heat pump
£7,500 for a ground source heat pump
£5,000 for an eligible biomass boiler
£2,500 for an air-to-air heat pump
An additional £1,500 may be available until March 2027 for eligible air source or ground source heat pump installations where the property is heated by oil or LPG and does not have a mains gas connection.
Are Rental Properties Eligible for the Scheme?
Yes. Property owners can apply for the scheme even when the property is rented to tenants. GOV.UK specifically confirms that properties rented out to tenants can qualify, provided the other eligibility requirements are met.
This means landlords can consider the scheme when upgrading:
Single rental houses
Flats and other eligible residential properties
Second homes
Holiday homes
Multiple legally separate properties
Owners of multiple properties can potentially apply for a voucher for each legally separate property, although only one voucher can be redeemed per property.
What Heating Systems Can Landlords Replace?
The Boiler Upgrade Scheme for landlords is primarily designed to support the replacement of existing fossil-fuel or qualifying electric heating systems.
Eligible existing systems can include:
Gas heating systems
Oil heating systems
LPG heating systems
Certain electric heating systems
The replacement system must meet the scheme's technical requirements and be capable of providing the property's required space heating and hot water.
A hybrid system combining a fossil-fuel boiler with an air source heat pump is not eligible for a BUS grant.
What Are the Main Eligibility Requirements for Landlords?
Before applying, landlords should check several important conditions.
The landlord must own the property
The applicant must own the property. This includes properties that are rented to tenants.
The property must be in England or Wales
The Boiler Upgrade Scheme is currently available for eligible properties in England and Wales. Different support arrangements apply in Scotland and Northern Ireland.
The existing heating system must qualify
The installation generally needs to replace an existing fossil-fuel or eligible electric heating system rather than an existing low-carbon heating system.
The installer must meet the required certification standards
Landlords should use an installer certified under the Microgeneration Certification Scheme (MCS) for the relevant technology.
The property cannot normally have already received certain funding
A property generally cannot receive BUS funding if it has already received government funding for installing a heat pump or biomass boiler at the same address.
Does the Property Need an EPC?
For retrofit installations, a valid Energy Performance Certificate can be relevant to the application. Ofgem's current installer guidance states that where a property has a valid EPC, the EPC number must be provided. Where there is no valid EPC, installers can provide alternative evidence demonstrating eligibility.
Landlords should therefore discuss the property's EPC status with their installer before proceeding.
It is also important to remember that the Boiler Upgrade Scheme is separate from the legal energy-efficiency requirements that apply to private rented properties. Landlords should consider both when planning improvements.
Can Tenants Apply for the Grant?
The grant is aimed at property owners, so a tenant would not normally apply for the Boiler Upgrade Scheme simply because they live in the property.
For a rented property, the landlord as the property owner can apply, subject to the scheme requirements. Landlords should also communicate with tenants about installation arrangements, access requirements and any temporary disruption caused by the work.
What Are the Benefits for Landlords?
Choosing a low-carbon heating system can provide several potential advantages for rental-property owners.
Lower upfront installation costs
The grant can contribute thousands of pounds towards an eligible heating installation, reducing the amount the landlord needs to fund themselves.
Improved property efficiency
A suitable heat pump can help modernise an older heating system and potentially improve the property's overall energy performance.
Better rental appeal
Energy-efficient features can make a rental property more attractive to tenants who are increasingly interested in heating efficiency and household running costs.
Long-term property improvements
Replacing an ageing fossil-fuel heating system can be a significant property upgrade and may support longer-term plans for improving the building's energy efficiency.
How Does the Application Process Work?
The process is generally handled with the help of the installer rather than requiring the landlord to manage every stage independently.
A typical process involves:
Check property eligibility
Confirm that the rental property and existing heating system meet BUS requirements.Find an MCS-certified installer
Choose an installer qualified to carry out the relevant low-carbon heating installation.Assess the property
The installer determines whether the proposed system is suitable and meets the technical requirements.Apply for the grant
The installer normally applies for the BUS voucher on the property owner's behalf.Install the new heating system
The eligible system must be installed and commissioned within the required timeframe.Redeem the voucher
The installer completes the required process so the grant can be applied to the installation cost.
Ofgem states that the heat pump or biomass boiler must be commissioned and installed within 120 days of the grant application to remain eligible.
What Should Landlords Check Before Applying?
Before committing to an installation, landlords should consider:
Whether the property is in England or Wales
Whether they own the property
The existing heating system
The property's EPC status
Whether the proposed technology is eligible
Whether the installer is MCS certified
The property's heating and hot-water requirements
The total installation cost after the grant
Any previous government funding received for low-carbon heating
Is the Boiler Upgrade Scheme Worth Considering for Landlords?
For eligible rental properties, the Boiler Upgrade Scheme for landlords can significantly reduce the initial cost of moving away from traditional fossil-fuel heating. The available grant depends on the technology selected and the property's circumstances.
Landlords should not assume that every rental property automatically qualifies. Eligibility, technical requirements and installation conditions must be checked before work begins. Working with an MCS-certified installer can help landlords understand whether their property is suitable and guide them through the application process.
Final Thoughts
The Boiler Upgrade Scheme for landlords provides property owners with an opportunity to access government support when replacing eligible heating systems with low-carbon alternatives. With grants currently reaching £7,500 for eligible air source and ground source heat pumps, the scheme can make a major difference to the initial investment required for a rental property.
For landlords considering a heating upgrade, the best approach is to check eligibility first, select an appropriately certified installer and understand the full installation cost before work begins. This can help ensure the property receives an eligible system while making the most of the available government support.
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