Boiler Upgrade Scheme for Landlords: 2026 Guide
Check Your Eligibility for Boiler Upgrade Scheme (BUS)
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Quick Answer:
Yes, private landlords who own qualifying rental properties in England or Wales can benefit from the Boiler Upgrade Scheme. In 2026, grants include £7,500 for eligible air-to-water and ground-source heat pumps, £2,500 for residential air-to-air heat pumps and £5,000 for qualifying biomass boilers. Certain off-gas properties replacing oil or LPG can receive £9,000 for an air-to-water or ground-source heat pump until 31 March 2027. An MCS-certified installer makes the application, while the landlord confirms ownership, consent and relevant eligibility details with Ofgem. Social housing is excluded.
Boiler Upgrade Scheme for Landlords: Can Landlords Apply in 2026?
Yes. Private landlords can use the Boiler Upgrade Scheme (BUS) for eligible rental properties in England and Wales. GOV.UK specifically includes properties rented out to tenants in its ownership test. However, the scheme is installer-led. The landlord does not submit the grant application personally; an MCS-certified installer applies to Ofgem on the property owner’s behalf.
For landlords, BUS can substantially reduce the upfront cost of replacing gas, oil, LPG or eligible electric heating with a qualifying low-carbon system. However, the property, proposed heating system and ownership arrangement must meet the current rules.
This guide focuses specifically on Boiler Upgrade Scheme landlords: current 2026 grant amounts, rental-property eligibility, tenant responsibilities, EPC rules, company-owned properties, portfolio landlords and the application process. For a broader overview of recent rule changes, see the Boiler Upgrade Scheme 2026 updates.
Compare quotes: If you are considering a heat pump for a rental property, compare property-specific quotations before committing. The grant can improve the economics considerably, but radiator, cylinder, electrical and other property-specific work can change the final cost.
How much can landlords get through BUS in 2026?
The grant applies to an eligible installation at a qualifying property. Current grant values are:
| Eligible system | BUS support | Key landlord consideration |
|---|---|---|
| Air-to-water heat pump | £7,500 | Common choice for homes with wet central heating |
| Ground-source heat pump | £7,500 | More complex installation and groundworks |
| Air-to-air heat pump | £2,500 | Residential properties only |
| Biomass boiler | £5,000 | Limited rural, off-gas circumstances |
| Qualifying off-gas air-to-water or ground-source heat pump | £9,000 | Replacing oil or LPG; temporary until 31 March 2027 |
The temporary £9,000 rate applies where the property has no mains gas connection and the heating being replaced is oil or LPG. It runs from 21 July 2026 until 31 March 2027 under the current rules.
Landlords with suitable rural or off-gas properties should therefore check eligibility and timing before starting work.
Can landlords get the Boiler Upgrade Scheme?
Yes. The official GOV.UK eligibility guidance expressly states that an eligible owner can include someone who owns a property rented out to tenants.
The property must be in England or Wales. BUS does not operate in Scotland or Northern Ireland.
The installation normally needs to replace qualifying existing heating. Ofgem’s rules cover fossil-fuel systems such as gas, oil and LPG, plus eligible electric heating other than an existing heat pump. A fossil-fuel boiler cannot normally be retained as part of a BUS-funded hybrid heat-pump system.
Landlords wanting the detailed property tests can also see the Boiler Upgrade Scheme requirements guide.
Which rental properties are excluded?
Social housing is excluded from BUS. Most new-build properties are also excluded, although limited self-build exceptions exist. Properties that have already received government support towards the same heat pump or biomass installation can also be ineligible.
This distinction matters. A privately rented house owned by an individual landlord can qualify, while a property classed as social housing does not qualify simply because it also has tenants.
Do landlords need an EPC for BUS in 2026?
Not necessarily. This is one area where older online information can now be misleading.
For applications properly made from 28 April 2026, a valid EPC is no longer a standing BUS eligibility requirement. If a property already has a valid EPC, the installer supplies its reference number. Without one, Ofgem allows alternative evidence, potentially including recent utility or fuel information, photographs of the existing heating system and an expired EPC where available.
This does not remove separate EPC responsibilities that apply to rented homes.
Private rented properties remain subject to separate Minimum Energy Efficiency Standards. The government’s 2026 policy decision also sets a higher EPC C or equivalent standard for private rented homes from 1 October 2030, subject to the detailed implementation framework.
BUS eligibility and rental-sector EPC compliance are therefore separate questions.
Must landlords install insulation first?
There is no general BUS requirement to install loft or cavity-wall insulation before receiving the grant. Energy Saving Trust confirms that insulation is not a condition of BUS eligibility.
However, that does not mean insulation is irrelevant. Reducing heat loss can improve comfort and help a heat pump operate effectively. An installer may also recommend changes to radiators, controls or other parts of the heating system.
For landlords, the useful figure is therefore the complete installed cost after BUS, rather than the heat-pump price alone.
Can portfolio landlords claim more than one BUS grant?
GOV.UK states that there is one grant per property. The limit is framed per property rather than per property owner.
Consequently, a portfolio landlord may potentially obtain separate grants for separate qualifying rental properties. Each address needs its own installation, application and eligibility assessment.
That does not mean the same heating solution should be repeated across an entire portfolio. A small flat, Victorian terrace and rural detached property can have very different heat loss, space, hot-water and heating requirements.
Can limited-company landlords qualify?
Potentially, yes.
Ofgem’s 2026 guidance specifically covers properties owned by organisations, including companies, charities and trusts. An individual legally authorised to represent the organisation — such as a director or trustee — provides consent on its behalf.
Another important rule concerns ownership of the heating system. The property owner must become the legal owner of the installed heat pump or biomass boiler. Arrangements under which an installer or finance provider keeps legal ownership of the equipment are not currently eligible for BUS.
That point deserves checking before a company landlord signs a lease-style or third-party-ownership finance agreement.
What must landlords do about tenants?
Ofgem requires a landlord to confirm that the tenant has been informed about the installation.
That is important because moving from a boiler to a heat pump can affect heating controls, hot-water arrangements, radiator sizes and access while work takes place.
Landlords should explain what is changing, when the work will happen and how the completed heating system will operate. Any separate leasehold, planning or property permissions should also be checked where relevant.
How do Boiler Upgrade Scheme landlords apply?
BUS is deliberately installer-led rather than requiring the landlord to complete a government grant application themselves.
- Find an MCS-certified installer. BUS installations must use an eligible MCS-certified installer. You can also use the MCS installer search.
- Arrange a property survey and compare quotations. Ofgem encourages owners to obtain more than one quote.
- Agree an itemised quotation showing the BUS deduction. The full grant must appear as an upfront discount.
- Your installer applies to Ofgem. You provide accurate property and ownership information.
- Confirm your consent. Ofgem contacts you directly. Online consent normally needs to be given within 14 days.
- Complete the work within the voucher period. Current Ofgem guidance allows three months for air-to-water, air-to-air and biomass vouchers and six months for ground-source heat pumps.
For a deeper walkthrough, see the Boiler Upgrade Scheme application guide.
After commissioning, the installer redeems the voucher. Ofgem pays the installer rather than sending the grant money to the landlord. The owner receives the benefit through the discounted quotation and invoice.
Is the Boiler Upgrade Scheme worth it for landlords?
For a suitable rental property, BUS can materially reduce the capital cost of moving away from fossil-fuel heating.
Energy Saving Trust currently puts a typical air-source heat-pump installation at around £12,000 before grants, although property size, radiator changes, cylinders, electrics and installation complexity can alter the figure substantially.
A £7,500 grant can therefore transform the upfront calculation. Nevertheless, landlords should not assume that installing a heat pump automatically cuts a tenant’s bills.
Running costs depend on heat demand, system efficiency, controls and electricity tariffs. Energy Saving Trust notes that on standard electricity tariffs a heat pump can sometimes cost slightly more to operate than a new gas or oil boiler, while suitable time-of-use tariffs can improve the result considerably.
For more detail, compare an air source heat pump with a gas boiler and review current air source heat pump running-cost factors.
Could BUS also help with future landlord EPC requirements?
Potentially, but a heat pump should not be treated as an automatic route to compliance.
The government’s final 2026 policy position for future private-rented-sector standards uses a fabric-performance metric first, followed by either a heating-system or smart-readiness metric. A heat pump could therefore contribute towards the heating side of a landlord’s strategy, but the whole property still matters.
The policy also explicitly excludes Boiler Upgrade Scheme funding from the proposed £10,000 landlord cost-cap calculation. Landlords planning specifically around the 2030 rules should check the final legislation and guidance before committing expenditure.
How long will the Boiler Upgrade Scheme continue?
The government’s Warm Homes Plan allocates approximately £2.7 billion to BUS through 2029/30, with annual funding increasing over the period.
That gives landlords more planning certainty than the scheme originally provided. However, future funding does not guarantee that every current grant value or eligibility rule will remain unchanged.
The temporary £9,000 off-gas uplift is a good example: under current rules, that particular rate ends on 31 March 2027.
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Frequently asked questions
Find clear answers to common questions about the Boiler Upgrade Scheme for landlords, including private and company landlords, tenants, multiple properties, social housing, EPCs, insulation, the £9,000 uplift, air-to-air heat pumps, electric heating, hybrid systems, tenant notification, grant payments and ownership.
Yes. Owners of privately rented properties in England and Wales can benefit if the property and installation meet BUS requirements. The installer makes the application on the landlord's behalf.
No. BUS is based on property ownership. The MCS-certified installer applies on behalf of the property owner.
Potentially. Ofgem permits organisation-owned properties, with an authorised individual such as a director providing consent.
Potentially, yes. The current rule is one grant per property, so qualifying properties can be assessed separately.
BUS funding is not available for properties classed as social housing. Separate government programmes support social-housing upgrades.
No. BUS operates in England and Wales. Scotland has separate low-carbon-heating support.
Not as a standing BUS requirement for applications properly made from 28 April 2026. An existing valid EPC should still be supplied where one exists; alternative evidence can be used otherwise.
No. Insulation is not a general precondition for BUS, although improving insulation may reduce heat loss and improve heating performance.
Yes, where the property meets the temporary off-gas criteria, including replacing oil or LPG heating and having no mains gas connection. The uplift currently runs until 31 March 2027.
Yes, an eligible air-to-air heat pump installed in a residential property can receive £2,500.
Eligible electric heating can be replaced under BUS, provided it is not an existing heat pump and the other scheme requirements are satisfied.
Not as part of a BUS-funded fossil-fuel hybrid system. The existing fossil-fuel heating normally needs to be fully replaced.
No. BUS is not intended to fund replacement of an existing low-carbon heating system.
Yes. Ofgem requires landlords to confirm that the tenant has been informed about the installation.
No. The grant appears as an upfront discount and Ofgem ultimately pays the installer.
For the standard online process, consent normally needs to be provided within 14 days of Ofgem's request.
The property owner must become the legal owner. Current BUS rules exclude arrangements where a third party retains ownership of the funded heating system.
No. Future private-rented-sector standards consider fabric performance alongside heating or smart readiness. A heat pump can contribute, but it does not guarantee compliance on its own.
Conclusion:
Landlords can use the Boiler Upgrade Scheme, and privately rented properties are expressly included in the current ownership rules.
The landlord-specific points are straightforward. Social housing is excluded. Tenants must be informed. Company-owned properties can potentially qualify. There is one grant per property. A valid EPC is no longer a standing BUS requirement for applications properly made from 28 April 2026. The property owner must also legally own the new heating system once it is installed.
Before proceeding, compare the full installed cost, not simply the grant headline. A property-specific assessment should establish heat loss, required system size, additional works and realistic running-cost assumptions.
For a qualifying rental property, particularly one already needing a heating replacement, BUS can make a heat-pump investment considerably more achievable.