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Government Grants Every Landlord Should Know About

By 4 min read • July 4, 2024
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As landlords in the UK, managing rental properties comes with a lot of responsibilities and financial considerations. However, amidst the challenges lies an opportunity to enhance properties while contributing to a more sustainable future.

Government grants aimed at improving energy efficiency offer a pathway for landlords to achieve these goals while also benefiting from financial assistance. In this article, we’ll delve into the available grants specifically tailored to support landlords in installing low-carbon heating systems and improving energy efficiency.

Gas Boiler Ban Extension

The UK government’s decision to extend the gas boiler ban until 2035 underscores the urgency of transitioning to low-carbon heating solutions.

Fossil fuel heating systems are being phased out to align with the nation’s commitment to achieving net-zero emissions.

For landlords, this means a shift towards alternative technologies such as heat pumps or biomass boilers in their rental properties.

Let’s take a look at the most prevalent funding opportunities for landlords in the UK:

Boiler Upgrade Scheme

A much talked about effort to promote energy efficiency is the Boiler Upgrade Scheme. This initiative offers substantial grants to landlords in England and Wales to replace existing fossil fuel heating systems with environmentally friendly alternatives.

Depending on the chosen technology, landlords can receive up to £7,500 off new biomass boiler, ground source heat pump, or air source heat pump costs.

Eligibility for the Boiler Upgrade Scheme is straightforward. Landlords who own properties in England and Wales, including those used for business purposes, can apply.

To qualify, the property must have had the new heating system installed on or after April 1, 2022, and must possess a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. The application process is streamlined, with certified Microgeneration Certification Scheme (MCS) installers assisting landlords throughout.

Boiler Upgrade Scheme Controversies

Despite the benefits offered by the Boiler Upgrade Scheme, controversies surrounding government policies on low-carbon heating technologies have created uncertainty among landlords.

Reports of potential policy reversals have added complexity to an already evolving landscape. However, it’s essential for landlords to remain focused on the long-term benefits of energy efficiency upgrades for their properties and tenants, irrespective of political uncertainties.

Energy Company Obligation (ECO4)

By participating in the ECO, landlords not only improve the energy efficiency of their rental properties but also contribute to broader efforts to combat climate change and alleviate fuel poverty.

To apply for the ECO, landlords should contact their local council or energy supplier to inquire about participation and eligibility criteria. Priority is typically given to low-income households or properties with subpar insulation, ensuring that those most in need benefit from the scheme.

Great British Insulation Scheme

Run by Ofgem, the Great British Insulation Scheme aims to improve the energy efficiency of the least energy-efficient homes in the UK. Landlords and tenants can get grants for insulation upgrades, making rental properties more appealing and cost-effective to maintain over time.

By joining this scheme, landlords make their tenants’ living spaces cosier and more energy-efficient, while also cutting down on energy bills and environmental harm.

To apply for the Great British Insulation Scheme, landlords can visit the government’s website or contact their energy supplier for more information. Eligibility criteria typically include the property’s Energy Performance Certificate (EPC) rating and Council Tax bad, with priority given to properties with lower ratings or higher Council Tax bands.

Navigating the Application Process

Applying for government grants may seem daunting, but the process is relatively straightforward. Landlords can start by researching eligible schemes and determining their property’s eligibility criteria.

Engaging with certified installers and energy suppliers will provide valuable guidance throughout the application process, ensuring a smooth transition to energy-efficient heating systems.

Advantages of Government Grants for Landlords

Comfortable living spaces

Government grants enable landlords to install modern heating systems, ensuring consistent warmth and customisable features like programmable thermostats. This fosters comfortable living environments for tenants, eliminating cold spots and drafts.

Future-proof properties

Investing in energy efficiency through grants aligns rental properties with evolving regulations, like net-zero emissions goals. By transitioning to low-carbon technologies, landlords safeguard their investments against regulatory changes and market shifts, ensuring long-term sustainability.

Environmental impact

Energy-efficient upgrades facilitated by grants significantly reduce reliance on fossil fuels, lowering carbon emissions and contributing to environmental preservation. By shrinking the property’s carbon footprint, landlords play a crucial role in combating global warming and promoting environmental stewardship.

Enhanced property value

Energy-efficient properties command higher rental rates and property values in the real estate market. Sustainable upgrades appeal to environmentally conscious tenants, making properties more desirable and attractive for long-term investment.


In conclusion, government grants present an invaluable opportunity for landlords to enhance the energy efficiency of their rental properties.

Through initiatives like the Boiler Upgrade Scheme, ECO4, and Great British Insulation Scheme, landlords can create more sustainable living spaces for their tenants while benefiting from financial assistance.

Embracing these opportunities not only fulfils environmental obligations but also enhances the overall value and desirability of rental properties in the long run.

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