Heat Pump Grant for Rental Properties: What Landlords Need to Know in 2026

Yes, landlords can claim the £7,500 Boiler Upgrade Scheme grant for rental properties. The property must have a valid EPC, use a fossil fuel heating system being replaced, and the installation must be carried out by an MCS certified installer. There are a few extra hoops to jump through compared to owner-occupiers, but the grant is absolutely available to landlords in 2026.

Can Landlords Actually Get the Heat Pump Grant for Rental Properties?

This is the question that trips up most landlords, because the messaging around the Boiler Upgrade Scheme hasn't always been clear. The short answer: yes. Landlords are eligible on exactly the same terms as homeowners, with the same £7,500 voucher towards an air source heat pump or ground source heat pump.

The grant applies per property, not per person. So if you own three rental properties, you could potentially claim three separate grants, one for each. That's up to £22,500 in government funding, which is not a small amount of money.

What catches some landlords out is the requirement that the property must currently be heated by a fossil fuel system. If you've got electric storage heaters in a flat, that property won't qualify. But if there's a gas boiler, oil boiler, or LPG system in place, you're in the running.

Eligibility Criteria: What Your Rental Property Needs

Let's run through the checklist. Your property needs to meet every one of these:

• It must have a valid Energy Performance Certificate (EPC). Not expired, not pending. Valid.
• The existing heating must be fossil fuel based: mains gas, oil, or LPG.
• The heat pump must be installed by an MCS certified installer who applies for the voucher on your behalf.
• The property must be in England or Wales.
• There must be no previous BUS grant claimed on that property.

One thing to note: the EPC requirement doesn't specify a minimum rating. Your property could be sitting at a D or E and still qualify. But you'll want to think carefully about insulation levels before installing a heat pump, because a poorly insulated house will need a larger, more expensive system to keep warm.

Frankly, getting the insulation sorted first is almost always the smarter move. A heat pump in a draughty Victorian terrace will work, but it'll cost more to run than it should, and your tenants won't thank you for it.

Do You Need Tenant Consent to Install a Heat Pump?

This is where things get a bit more practical. You don't need your tenant's formal consent to apply for the BUS grant itself. But you absolutely need to coordinate with them, because the installation involves significant disruption.

We're talking about an outdoor unit being fitted, potentially new radiators inside, pipework changes, and probably a full day or more of engineers in the property. If your tenant is on an assured shorthold tenancy, you'll need to give proper notice before entering the property for works. Most landlords find that having an honest conversation with their tenant about the benefits, lower energy bills, a more consistent temperature, goes a long way.

If you're between tenancies, that's the ideal window. You can get the work done without anyone being inconvenienced and have the property ready with a shiny new heating system for the next tenant.

How Does a Heat Pump Affect Your EPC and MEES Compliance?

This is the real reason many landlords are looking at heat pumps right now. The Minimum Energy Efficiency Standards already require rental properties to have an EPC rating of at least E. But proposed changes have been heading towards a C rating requirement, and while timelines have shifted, the direction of travel is clear.

Installing a heat pump can push your EPC rating up significantly. A property sitting at a D could jump to a C or even a B depending on insulation levels and other factors. That's a genuine future-proofing move.

Here's a real example. A two-bed semi in Nottingham with a 15-year-old gas boiler, double glazing, and loft insulation rated at EPC D. After installing an air source heat pump and upgrading to a hot water cylinder, the property's EPC moved to a C. The landlord paid roughly £5,500 out of pocket after the £7,500 grant, on a total installation cost of about £13,000. That property is now MEES compliant under current and likely future rules.

And here's the thing that often gets overlooked: a better EPC rating can justify a higher rent. Tenants increasingly care about energy costs, and a property with a heat pump and low running costs stands out on Rightmove.

The £7,500 Boiler Upgrade Scheme Grant: How It Works for Landlords

The Boiler Upgrade Scheme was extended and is running through to 2028. The grant amount is £7,500 for air source heat pumps and £7,500 for ground source heat pumps. This is a point-of-sale discount, meaning you never handle the money yourself. Your MCS certified installer applies for the voucher, and the grant amount is deducted from your bill.

The process works like this:

1. You get quotes from MCS certified installers.
2. You choose an installer and agree on the system.
3. The installer applies for the BUS voucher through Ofgem.
4. Once the voucher is issued (usually within a few weeks), the installation goes ahead.
5. You pay the installer the total cost minus £7,500.

There's no means testing. It doesn't matter what your income is or how many properties you own. Each eligible property gets one shot at the grant.

One practical tip: don't leave this until the last minute. Installer availability can be tight, particularly in spring and autumn when demand peaks. Getting quotes early in 2026 gives you the best chance of booking your preferred dates.

"Won't a Heat Pump Cost My Tenants More to Run Than Gas?"

This is the objection that comes up most often, and it deserves a straight answer. A well-installed heat pump in a reasonably insulated property should cost roughly the same as gas to run, and in many cases less. The key phrase there is "well-installed."

Heat pumps run on electricity, which costs more per unit than gas. But because heat pumps are roughly three times more efficient than a gas boiler (they move heat rather than burn fuel), the maths works out. At current 2026 electricity prices of around 24p per kWh and gas at roughly 6p per kWh, a heat pump with a coefficient of performance of 3.0 effectively costs about 8p per kWh of heat delivered. That's competitive with gas.

Where tenants can get stung is if the system is undersized, the house leaks heat like a sieve, or the radiators haven't been upgraded to work at lower flow temperatures. This is why choosing a competent MCS certified installer matters so much. A proper heat loss survey and system design makes all the difference.

If you're worried, ask your installer for estimated running costs based on the specific property. Any decent installer will give you this as part of their quote.

Can You Claim Tax Relief on a Heat Pump Installation?

This is separate from the BUS grant and worth knowing about. As a landlord, the cost of installing a heat pump is a capital expense, not a revenue expense. That means you can't deduct it from your rental income in the year you spend it. However, you may be able to claim capital allowances or factor it into your capital gains calculation when you sell the property.

Speak to your accountant about the specifics for your situation. The tax treatment of energy efficiency improvements for landlords has been evolving, and it's worth getting proper advice rather than assuming.

Frequently Asked Questions

Can a landlord get the boiler upgrade scheme grant?

Yes, landlords in England and Wales can claim the £7,500 BUS grant for each eligible rental property. The property must have fossil fuel heating being replaced, a valid EPC, and the work must be done by an MCS certified installer.

Do I need my tenant's permission to install a heat pump?

You don't need formal tenant consent for the grant application, but you do need to arrange access to the property for the installation. Give proper notice and discuss the benefits with your tenant. Many landlords find doing the work between tenancies is easiest.

How many rental properties can I claim the heat pump grant for?

There's no limit on the number of properties. Each eligible property can receive one £7,500 voucher, so if you own five qualifying rentals, you could claim five grants. The grant is per property, not per landlord.

Will a heat pump improve my rental property's EPC rating?

In most cases, yes. Replacing a gas or oil boiler with a heat pump typically improves an EPC by one or two bands. A property at D could move to C or B, helping you meet current and future Minimum Energy Efficiency Standards requirements.

Is a heat pump cheaper to run than a gas boiler for tenants?

When properly installed in an adequately insulated home, a heat pump can cost about the same or less than gas heating. At 2026 energy prices, a heat pump with a COP of 3.0 delivers heat at around 8p per kWh, compared to roughly 6-7p per kWh for gas at 90% boiler efficiency. The gap is narrow and closing.

Find an MCS Certified Installer for Your Rental Property

If you're a landlord looking to claim the £7,500 heat pump grant, the first step is getting quotes from qualified installers. Use our directory at heatpumpinstallerdirectory.co.uk to find MCS certified heat pump installers in your area. You can compare local companies, check their credentials, and start the process of upgrading your rental property's heating while the grant is still available.