You can claim the Boiler Upgrade Scheme grant on a rented property, and the government plans to require EPC C by 1 October 2030. This guide shows where a heat pump helps a landlord, where insulation does the job for less, and who ends up paying the bills.
Quick answer: the EPC C rule is planned, not law yet; the grant is real and open to landlords today; and the running costs land on your tenant unless the system is designed well.
Today the legal floor is EPC E. The government's January 2026 response confirms EPC C by 1 October 2030 for in-scope tenancies in England and Wales, with spending capped at £10,000 per property and a 10-year exemption beyond that. The statutory instrument is expected in 2027. What the law requires, and when.
Landlords can apply for the Boiler Upgrade Scheme as the property owner: £7,500, or £9,000 where oil or LPG heating is replaced in a home with no mains gas until 31 March 2027. Lower-income tenants may unlock council-run Warm Homes: Local Grant funding, and a government-backed loan exists for landlords. Every route compared.
Normally the tenant. At the 1 October to 31 December 2026 cap, electricity is 26.32p a kWh against 7.97p for gas, so a heat pump only saves money when it is designed to run efficiently. Get that wrong and you have raised your tenant's bills to meet your own deadline. What to check before you commit.
The planned standard works in two steps. A fabric performance standard comes first, then the landlord chooses either a heating-system standard or a smart-readiness standard. For many band D homes, loft insulation, draught-proofing and sometimes cavity wall insulation do most of the work, and they cost a fraction of a heat pump.
A heat pump earns its place when the boiler is at end of life, the property is off the gas grid and heated by oil, LPG or direct electricity, or the fabric is already reasonable and the heating system is what holds the band back. In that case the grant makes the arithmetic work. The honest landlord question is not "should I fit a heat pump?" but "what is the cheapest route to C that the tenant can afford to live in?"
How an EPC treats a heat pump · When it is worth it, and when it is not
Work out the grant, the net cost and how the heating bill could change for one rental property. It runs in your browser and nothing is sent to us. Prices are the Ofgem cap for 1 October to 31 December 2026; the heat demand and efficiency figures are planning assumptions you can overwrite.
Grant amounts are from GOV.UK as read on 2026-10-08. Unit prices: electricity 26.32p/kWh and gas 7.97p/kWh (Ofgem cap, 1 October to 31 December 2026); oil is priced at an average of 109.3p per litre read on 28 September 2026 with 10.35kWh per litre. Heat pump running costs depend on the home, the emitters and your tariff. This is an illustration, not a quote or advice.
Treat the grant as part of the capital plan rather than a discount: the upgrade stays with the property, supports the rating a lender or buyer will see, and keeps the home lettable after the standard changes. This site does not arrange credit or give tax advice.
| Scheme | What it is | Who it is for | Money | Dates |
|---|---|---|---|---|
| Boiler Upgrade Scheme | Grant towards an air-to-water, ground source or air-to-air heat pump | Property owners in England and Wales, including landlords. Not social housing or most new builds | £7,500; £9,000 replacing oil or LPG with no mains gas (until 31 March 2027); £2,500 air-to-air | Open now; one grant per property |
| Warm Homes: Local Grant | Council-delivered insulation, solar, batteries and low-carbon heating | Lower-income tenants in England in homes rated EPC D to G; landlord contributes from the second property. Greater Manchester and West Midlands combined authority areas (including Manchester, Birmingham and Coventry) are outside the national scheme and set their own landlord terms | Up to £16,600 each for energy performance and heat, as an average across a council project | Delivery window closes 31 March 2028 |
| Warm Homes Loan Scheme | Lender loan for heat pumps, solar and batteries | Owner-occupiers and private landlords, any UK domestic property | Heat pump loans up to £20,000; government pays lenders up to 20% so the rate is lower | Phased launch from September 2026 |
| ECO4 | Supplier-funded insulation and heating | Low-income and vulnerable households, including some tenants | Varies by measure | Closes 31 December 2026 |
| MEES cost cap | Not a grant: the most a landlord must spend to reach EPC C | Landlords of in-scope tenancies in England and Wales | £10,000 per property; spend counts from 1 October 2025 | Standard applies from 1 October 2030 |
| Zero-rated VAT | Installing heat pumps and insulation in homes | Everyone paying for the work | 0% until 31 March 2027, then 5% | Changes 1 April 2027 |
No countdown clocks here: only the fixed dates in the published guidance, and what each one means for a landlord.
Each city page uses the 2021 Census for the share of households that rent privately, how many live in flats, and how they heat their homes, because a city of terraces on gas and a city of flats on electric heaters need different upgrades.
Usually not. The government's planned standard puts fabric performance first, then lets the landlord meet either a heating-system standard or a smart-readiness standard. Loft insulation, draught-proofing and cavity wall insulation cost far less than a heat pump and often move a band D property most of the way. A heat pump is the right answer when the heating system is the thing holding the rating back, or the boiler is failing anyway. How the EPC treats a heat pump.
Possibly. On the Ofgem cap for 1 October to 31 December 2026, electricity is 26.32p a kWh and gas 7.97p, so a heat pump needs a seasonal efficiency (SCOP) above roughly 3.3 just to break even against a gas boiler. A well-designed system on a good tariff clears that; a poorly designed one does not. Compare the figures for your own property in the calculator and read who pays and what changes.
No, according to the government's response of 21 January 2026: Boiler Upgrade Scheme funding will not count toward the £10,000 cap, while other third-party funding, including other government schemes, can. The regulations had not been laid when this page was checked, so the final rule could still differ. How the cap and exemptions work.
Yes. The GOV.UK eligibility page says you must own the property you are applying for, "including if it's a business, a second home, or a property you rent out to tenants". Social housing and most new builds are excluded, and the heat pump must replace a fossil fuel or electric heating system. The landlord rules in full.
The grant does not ask for it, but the work needs access, disruption and sometimes a tenancy conversation. Between lets is easiest. Leasehold flats and listed buildings add their own consents. The pre-install checklist.
No. Nothing in the published plans requires a heat pump. The planned rule is that in-scope tenancies reach EPC C by 1 October 2030, or hold a valid exemption. How a landlord gets there is their choice, and insulation is often the cheaper first step.
Yes. You must own the property you are applying for, including a property you rent out to tenants. The grant is £7,500 for 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. It is one grant per property.
The government's response of 21 January 2026 says all in-scope private tenancies in England and Wales must meet EPC C by 1 October 2030, unless exempt. A statutory instrument is expected in 2027. Today's legal minimum is still band E.
The Energy Saving Trust gives around £12,000 for an air source heat pump before grant, and DESNZ reports a median installed cost of £12,908 for grant-funded air-to-water systems in 2026 Q2, including the grant value. Small flats cost less and larger or older houses more. After the £7,500 grant, many landlords pay roughly £4,500 for a typical system.
It can, but not automatically. The rating depends on the fabric of the building as well as the heating system, and the new EPC approach scores fabric performance first. A heat pump in a poorly insulated home may move the band less than insulation would. The full explanation covers when it helps most.
Normally the tenant, on their own electricity account. That is why design quality matters: a heat pump that costs more to run than the gas boiler it replaced is a bill shock the landlord created. The guide to tenant bills sets out what to check.
No. It is an independent guide published by SEO-DONS LTD (company number 16766013). It does not install, survey or certify anything. If you ask for quotes, your enquiry is passed to relevant independent firms, and you should check any firm on the MCS and TrustMark registers yourself.
Tell us about the property. We pass your enquiry to relevant independent heat pump firms that cover your postcode, and they contact you directly. There is no charge to you for the introduction and no obligation to go ahead.