Heat Pump Grants for Landlords: Rental Property Rules 2026
Check Your Eligibility for Boiler Upgrade Scheme (BUS)
Complete your details below to check your eligibility.
Thank you
We've received your details and will be in touch shortly.
Quick Answer
Private landlords in England and Wales can use the Boiler Upgrade Scheme for qualifying rental properties. Standard support is £7,500 towards an eligible air-to-water or ground source heat pump. Until 31 March 2027, qualifying properties without a mains gas connection that currently use oil or LPG can receive £9,000. Residential air-to-air systems can receive £2,500.
The landlord must own the property, while an MCS-certified installer applies for the grant on the owner’s behalf. Social housing, most developer-built new homes, properties that have already received public funding for the same heat pump and installations replacing an existing low-carbon heating system are generally excluded.
Heat Pump Grants for Landlords: Can Rental Properties Qualify in 2026?
Yes. Private landlords can qualify for heat pump grants for rental properties in England and Wales under the Boiler Upgrade Scheme (BUS).
GOV.UK specifically confirms that property owners can qualify when the property is rented out to tenants. The landlord must own the property, and the proposed installation must meet the scheme’s technical and property eligibility rules.
In 2026, most qualifying air-to-water and ground source heat pumps can receive £7,500 towards installation. Certain off-gas-grid properties replacing oil or LPG heating can currently receive £9,000, while eligible residential air-to-air heat pumps can receive £2,500.
For landlords, the important point is that BUS is based mainly on property ownership and installation eligibility, not whether the owner lives in the property.
This guide explains which rental properties qualify, how much landlords can claim, exclusions, portfolio rules, EPC considerations and how the application works.
Considering a heat pump for a rental property? Compare properly surveyed quotations before committing to an installation.
Can Landlords Get the Boiler Upgrade Scheme?
Yes. The official GOV.UK Boiler Upgrade Scheme eligibility guidance explicitly includes a property that you rent out to tenants. GOV.UK Boiler Upgrade Scheme eligibility guidance
Ofgem’s current guidance also lists properties rented to tenants among eligible residential property types.
This means a buy-to-let property is not automatically excluded simply because the landlord lives elsewhere.
However, landlord status alone does not guarantee a grant. The property and heating installation must satisfy the wider BUS requirements.
For a broader explanation of the scheme, see Getfreequote.co.uk’s Boiler Upgrade Scheme 2026 updates.
How Much Heat Pump Grant Can a Landlord Get?
Current BUS support depends mainly on the technology and, for the temporary uplift, the property’s existing fuel supply.
| Installation | BUS support in 2026 | Key condition |
|---|---|---|
| Air-to-water heat pump | £7,500 | Standard eligible installation |
| Ground/water source heat pump | £7,500 | Standard eligible installation |
| Off-gas air-to-water or ground source heat pump | £9,000 | No mains gas connection and replacing qualifying oil or LPG heating; uplift ends 31 March 2027 |
| Residential air-to-air heat pump | £2,500 | Residential properties only |
GOV.UK states that one grant can be received per property.
The temporary £9,000 rate became available from 21 July 2026. It is not a general £9,000 grant for every landlord. The property must meet the off-gas and existing-heating conditions.
For detailed eligibility checks, use Getfreequote.co.uk’s Boiler Upgrade Scheme requirements guide.
Which Rental Properties Qualify?
A typical privately rented house or flat may qualify when the landlord owns it and the planned system satisfies BUS rules.
For retrofit installations, the heat pump must normally replace an existing fossil-fuel or electric heating system. It cannot simply replace another existing low-carbon heating system. The installation also needs to meet the relevant technical standards.
The installer carrying out the BUS-funded work must be MCS certified.
Rental properties that may not qualify
Important exclusions include:
- Social housing.
- Most new-build properties developed commercially.
- Properties that have already received government funding for the purchase or installation of the same heat pump or biomass boiler.
- Properties where a previous BUS grant has already been redeemed.
- Hybrid installations combining a fossil-fuel boiler with the BUS-funded heat pump.
- Installations replacing an existing low-carbon heating system.
Ofgem confirms that existing private rental properties can qualify, while social housing is excluded.
Flats, converted buildings and properties with shared heating can require a more detailed assessment because legal property boundaries and the heating arrangement matter.
Can a Landlord Claim for Several Rental Properties?
Yes. This is particularly important for portfolio landlords.
Ofgem’s 2026 installer guidance says owners of multiple properties may apply for a BUS voucher for each legally separate property, although only one voucher can be redeemed per property.
Therefore, BUS does not operate as a single grant for an entire landlord portfolio.
For example, a landlord with four legally separate eligible houses could potentially pursue a separate BUS installation for each house. Each property would still need to qualify independently.
That distinction also means landlords should assess a portfolio property by property rather than assuming the same heating design or economics will work everywhere.
Does the Tenant Apply for the Boiler Upgrade Scheme?
No. BUS is an installer-led scheme for the property owner.
The landlord chooses an MCS-certified installer and agrees the proposed installation. The installer then submits the voucher application to Ofgem on the landlord’s behalf.
Ofgem contacts the property owner to confirm consent and eligibility. The grant value should appear as an upfront deduction from the installation quotation and invoice.
The tenant will naturally need to cooperate with access for surveys and installation where the property is occupied, but they are not the BUS grant applicant.
For the process in more detail, read the Boiler Upgrade Scheme application guide.
Do Landlords Need an EPC to Get BUS Funding?
The rules changed in 2026.
For applications properly made from 28 April 2026, a valid EPC is no longer a standing BUS eligibility requirement. Where no valid EPC exists, installers can use alternative evidence where permitted by the scheme rules.
However, landlords should not conclude that EPCs no longer matter.
Rental-property energy standards operate separately from BUS. The Government has confirmed a policy intention for privately rented homes in England and Wales to meet a higher standard equivalent to EPC C under new metrics by 1 October 2030, subject to the required legislation and implementation process.
A heat pump may therefore form part of a wider long-term property improvement plan, but landlords should assess insulation, fabric performance and heating together rather than assuming a heat pump alone will guarantee future compliance.
Are Other Heat Pump Grants Available to Landlords?
BUS is not the only route worth checking.
Warm Homes: Local Grant in England
The Warm Homes: Local Grant can fund improvements including air source heat pumps for eligible lower-income households in privately owned homes. The property normally needs an EPC of D to G, and household-income or other qualifying criteria apply. Check the Warm Homes: Local Grant on GOV.UK
For eligible privately rented properties, local schemes can fully fund one qualifying property per landlord, with a landlord contribution generally required for additional properties. Rules and available budgets are administered locally, so eligibility should be checked with the relevant council.
Scotland
The Boiler Upgrade Scheme does not operate in Scotland.
Registered Scottish private landlords can instead investigate the Private Rented Sector Landlord Loan, which currently includes heat pumps among eligible improvements and offers up to £10,000 towards an eligible heat-pump installation as loan funding. Home Energy Scotland Private Rented Sector Landlord Loan
Northern Ireland
BUS also does not apply in Northern Ireland. Landlords should check current Northern Ireland energy-support programmes rather than assuming an England or Wales scheme applies.
Is a Heat Pump Financially Worthwhile for a Landlord?
The grant can materially reduce the initial cost, but the remaining investment is property-specific.
Energy Saving Trust currently estimates a typical air source heat pump installation at around £12,000 before funding. Energy Saving Trust air source heat pump guidance
On that simple headline figure, a £7,500 grant would leave around £4,500 and a £9,000 grant around £3,000. However, those are illustrations rather than expected quotations.
Radiator changes, electrical work, hot-water storage, pipework and property-specific installation requirements can alter the total substantially.
Landlords should also distinguish between installation economics and running costs. The landlord normally funds the capital improvement, while tenants commonly pay the property’s energy bills. Real heat-pump running costs depend on heat demand, system efficiency, electricity tariffs and operating temperatures.
See Getfreequote.co.uk’s air source heat pump running-cost guide and guide to whether air source heat pumps are worth it before judging the investment from the grant figure alone.
How Does a Landlord Apply?
- Confirm that the rental property is in England or Wales.
- Check the existing heating system and likely BUS eligibility.
- Obtain quotations from MCS-certified heat-pump installers.
- Arrange a property-specific heat-loss and heating-system assessment.
- Agree the system and quotation with the chosen installer.
- The installer submits the BUS voucher application to Ofgem.
- Respond when Ofgem contacts you to confirm consent and ownership details.
- Complete the installation within the required voucher period.
- Check that the grant appears as a deduction on the quotation and final invoice.
BUS is deliberately installer-led, so the landlord does not normally claim the money and wait for reimbursement. The installer redeems the voucher, while the landlord benefits from the reduced upfront price.
Get Your Free Air Source Heat Pump Quote
Find the right air source heat pump solution for your home. Tell us a few details and our team will help you explore suitable options at a competitive price.
Quick to complete. No obligation.
Get your quote
Enter your details below and one of our team will get back to you.
Frequently asked questions
Find clear answers to common questions about heat pump grants for landlords and rental properties, including £7,500 and £9,000 Boiler Upgrade Scheme support, buy-to-let homes, multiple properties, tenants, HMOs, flats, social housing, EPCs, VAT, Scottish support and the Warm Homes: Local Grant.
Yes. A private landlord who owns an eligible property in England or Wales can potentially receive £7,500 towards a qualifying air-to-water or ground source heat pump.
Yes. GOV.UK explicitly includes properties rented out to tenants within BUS ownership eligibility.
Yes, where the rental property has no mains gas connection, currently uses qualifying oil or LPG heating and meets the remaining BUS requirements. The uplift currently runs until 31 March 2027.
Yes. Ofgem says owners of multiple properties may apply for a voucher for each legally separate eligible property. Only one BUS voucher can be redeemed per property.
No. The MCS-certified installer applies on behalf of the property owner. Ofgem then contacts the landlord to confirm consent.
BUS is not normally means-tested. Tenant income can matter for other schemes such as the Warm Homes: Local Grant.
Potentially, but eligibility depends on legal property structure, the existing heating system and the proposed heat-pump arrangement. A scheme-compliant installer should assess it.
Potentially. A legally separate flat with a qualifying heating installation may be eligible, although leasehold permissions, outdoor-unit positioning or shared heating can make installation more complicated.
No. Social housing is excluded from the Boiler Upgrade Scheme.
Most developer-built new properties are excluded. Specific self-build exceptions exist, but they have strict conditions.
Potentially, yes. Ofgem's current retrofit rules allow eligible installations to replace qualifying electric heating as well as fossil-fuel heating.
Normally no. BUS is not available simply to replace an existing low-carbon heating system.
A valid EPC is no longer a standing BUS requirement for applications properly made from 28 April 2026, although property evidence is still needed and EPC rules remain important for rental regulation.
It can influence the property's energy assessment, but the result depends on the whole building, including fabric, heating controls and the methodology used. Do not assume installation alone guarantees a particular EPC rating.
Normally no. The installer applies and redeems the voucher. The grant should appear as a deduction from the price charged to the property owner.
Qualifying installations of energy-saving materials, including heat pumps, currently benefit from 0% VAT until 31 March 2027 under the existing rules.
Scotland does not use BUS. Registered private landlords can currently investigate the Scottish Government-funded Private Rented Sector Landlord Loan.
Eligible privately rented homes in England can participate where the household and property satisfy the scheme criteria. Local-authority delivery rules and available funding apply.
Conclusion
Private rental properties can qualify for heat pump grants, and landlords are explicitly included within the Boiler Upgrade Scheme in England and Wales.
For most qualifying air-to-water and ground source installations, the grant is £7,500. Certain off-gas properties replacing oil or LPG can currently receive £9,000 until 31 March 2027. Residential air-to-air heat pumps can receive £2,500.
Portfolio landlords can also apply for separate legally distinct properties rather than being restricted to one BUS grant across their entire portfolio.
The best next step is to check each property’s heating system, heat loss, installation requirements and likely post-grant cost individually.
Compare free heat-pump quotes: A properly surveyed quotation will show whether BUS funding makes a heat pump commercially sensible for your rental property.
