Boiler Upgrade Scheme for London Landlords in 2026: Eligibility and How to Apply
The government Boiler Upgrade Scheme provides up to 7,500 pounds towards a heat pump installation. This guide explains what London landlords need to know about eligibility, excluded property types, and the application process.
What the Boiler Upgrade Scheme Offers
The Boiler Upgrade Scheme (BUS) is a government grant programme administered by Ofgem that provides a 7,500 pound upfront grant towards the installation of an air source heat pump. The grant is applied at the point of installation by the installer — the homeowner or landlord does not pay the full cost and then claim back. Instead, the MCS-certified installer receives the grant directly from Ofgem and discounts it from the customer invoice. This structure means the grant reduces the upfront cost rather than requiring the landlord to fund the installation and wait for reimbursement.
The scheme was extended in 2024 with the grant level increased from 5,000 to 7,500 pounds for air source heat pumps, substantially improving the economics of heat pump installation for eligible properties. For London landlords with properties that are suitable for heat pump technology, the grant brings the effective cost of a heat pump installation much closer to the cost of a like-for-like gas boiler replacement.
Eligibility Criteria for Landlords
To be eligible for the Boiler Upgrade Scheme as a landlord, the property must be a domestic premises in England, Wales, or Scotland — the scheme does not cover commercial properties. The property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft insulation or cavity wall insulation. If the EPC has those recommendations outstanding and they have not been actioned, the property will not qualify until the insulation work is completed and a new EPC is issued confirming the measures are in place.
The landlord must own the property and be having the heat pump installed for the benefit of the tenants. The property cannot have previously received a grant under the BUS or its predecessor scheme for the same technology type. The installer must be registered with the Microgeneration Certification Scheme (MCS), and the heat pump itself must meet the MCS product certification requirements.
What Properties Are Excluded
New build properties completed after 2021 are generally excluded from the BUS, on the basis that they should already be built to a standard that avoids fossil fuel heating. Properties that have previously received a Renewable Heat Incentive payment for the same technology type are also excluded. HMOs — houses in multiple occupation with five or more occupiers from two or more households — are generally not eligible under the domestic scheme. Landlords of HMOs seeking to upgrade heating systems towards low-carbon alternatives should consult the Non-Domestic Renewable Heat Incentive and current Ofgem guidance on commercial schemes.
Flats in multi-storey blocks present particular practical challenges for heat pump installation, as external units require building consent and may conflict with lease terms or building owner permissions. Even where a London flat is technically eligible for the BUS grant, the practical and legal barriers to external unit installation may make the scheme inaccessible.
The EPC Insulation Requirement in Practice
The requirement that the EPC must show no outstanding recommendations for loft or cavity wall insulation is a practical hurdle for many London properties. Victorian and Edwardian terraces — which form a large proportion of London rental stock — often have solid brick walls rather than cavity walls, meaning cavity wall insulation is not applicable. Solid walls do not trigger the cavity wall insulation recommendation on the EPC. However, properties with cavity walls that have not been insulated will show this recommendation and must have the insulation installed and the EPC updated before the BUS application can proceed.
London landlords should obtain a current EPC for each rental property they are considering for a heat pump upgrade, review the recommendations carefully, and arrange any required insulation work before booking an MCS installer assessment. Prestige Engineers can advise on the heat pump feasibility and installation process for London rental properties, and can coordinate with MCS-certified heat pump installers.
How the Application Process Works
The application is made by the MCS-certified installer on behalf of the property owner. The installer must confirm the EPC status and property details, submit the application to Ofgem, and receive approval before the installation takes place. Once approval is confirmed, the installation proceeds and the installer claims the grant from Ofgem after completion. The landlord pays only the net cost after the grant is deducted. Prestige Engineers work with MCS-certified partners and can guide London landlords through the eligibility check and application process from initial assessment to completed installation.