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17/12/25 3:30 pm
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The UK government's Boiler Upgrade Scheme offers landlords substantial financial support for replacing traditional heating systems with low-carbon alternatives. Understanding how to access these grants can significantly reduce the cost of property improvements while preparing rental properties for future energy efficiency requirements. For additional practical insight, see Total Landlord’s overview of eco-friendly upgrades and landlord funding and this chapter on government grants.
The Boiler Upgrade Scheme provides grants to help property owners replace fossil fuel heating systems with renewable alternatives. Since its enhancement in October 2023, the government increased grant amounts, making heat pump installations more attractive to property investors.
The scheme covers:
These grants apply to properties in England and Wales, with separate schemes for Scotland and Northern Ireland.
The enhanced grant structure addresses several key concerns for rental property owners. Traditional gas boiler replacements typically cost between £2,000-£4,500, while heat pump installations can exceed £10,000 (read more on eco-upgrades and costs here). The increased grant significantly narrows this cost gap.
Another important context: landlords are no longer required to upgrade all rental properties to EPC Band C by 2028. Instead, changes now mean you have until 2035—or only when existing boilers reach the end of life—to replace gas boilers with heat pumps (learn more about EPC compliance for landlords). This offers more flexibility for your investment planning while still encouraging a gradual transition to low-carbon heating.
To qualify for Boiler Upgrade Scheme funding, rental properties must meet specific criteria:
Energy Performance Certificate (EPC) requirements:
Property suitability:
Application process:
For deposit protection compliance when making property upgrades, see the mydeposits advice on landlord responsibilities.
1. Assess your property's suitability
2. Address outstanding EPC recommendations
Complete any required insulation improvements before applying. Good insulation maximises heat pump efficiency and keeps tenants happy.
3. Research certified installers
4. Plan for additional costs
5. Inform and educate tenants
Heat pumps work differently from gas boilers. Give tenants clear guidance on optimal usage (property maintenance and tips).
The enhanced grant amounts took effect from 23rd October 2023, following the government's net-zero policy review. The scheme operates alongside other energy efficiency initiatives, such as:
Government data shows that, by September 2023, Ofgem had received 22,857 voucher applications for the Boiler Upgrade Scheme—demonstrating rising interest among landlords.
Although heat pump installations have traditionally cost more than gas boiler replacements, market competition is driving costs down. For example, Octopus Energy now offers models from £3,000 after the grant.
However, the total project cost might exceed the equipment price due to:
Find more in-depth investment advice here.
Planning considerations
Is it worth installing a heat pump now, or should you wait for further improvements? This depends on existing boiler condition, insulation, and long-term plans.
Tenant impact
Heat pumps require different usage habits compared to gas boilers and can affect tenant comfort—especially in poorly insulated properties (see damp and tenant guidance).
Future requirements
As standards evolve, keeping up with future landlord energy regulations will ensure properties stay compliant and attractive to tenants.
Can landlords claim the full £7,500 heat pump grant?
Yes, landlords are eligible for the full grant—£7,500 for air or ground source heat pumps, £5,000 for biomass boilers. The value is deducted from the installation cost (full details).
What EPC requirements must rental properties meet?
A valid EPC with no outstanding insulation recommendations is essential. The EPC must be active at the time of grant application.
Who applies for the grant on behalf of landlords?
Applications must be made by MCS-certified installers through the official Ofgem website.
Are there limits on how many properties can receive grants?
The scheme is first come, first served, but individual landlords can apply for several properties if eligible.
Do tenants need to be informed about heat pump installations?
It's best practice to inform tenants about work and provide guidance on using new technology. Good tenant communication helps ensure a smooth upgrade process.
Can the grant be combined with other energy efficiency funding?
The Boiler Upgrade Scheme may be combined with other grants—always check with your installer (list of UK property grants).
What if a property's EPC has outstanding recommendations?
All insulation measures required by the EPC must be completed for grant eligibility. Other recommendations may affect performance but not grant approval.
Are heat pumps suitable for all rental properties?
Suitability depends on factors like insulation, space, and electrical capacity. Professional assessment and advice are recommended.
How long does the grant application process take?
Applications usually take several weeks from installer submission to approval, then work can be scheduled.
Will heat pump installations increase property values?
Energy-efficient heating systems generally make properties more appealing and can add value, particularly as regulations tighten.
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