Compare the Boiler Upgrade Scheme and Warm Homes: Local Grant for a D-rated rental, including who qualifies, who applies, landlord contributions and when to review the EPC first.
A D-rated rental does not need a new heating system simply because its EPC shows D. If heating is the right upgrade, a grant may reduce the cost, but the useful first decision is whether the property needs heating work to reach the owner’s target at all. A free, property-specific EPC assessment can compare the current evidence, smaller measures and a funded heating route before a landlord commits to an installation.
For a private landlord, the two main heating funding routes to compare in September 2026 are the Boiler Upgrade Scheme (BUS) and the Warm Homes: Local Grant. They answer different questions. BUS is an installer-led grant towards an eligible low-carbon heating installation in England or Wales. The Local Grant is an England-only, council-led package for a qualifying lower-income household in a D-to-G home. Neither is a general cash grant for replacing any boiler, and neither promises EPC C.
The short answer: match the route to the property and tenant
If the landlord owns a rental with eligible existing heating and wants to explore a heat pump, check BUS with an MCS-certified installer. Government guidance confirms that rented-out properties can qualify when the property and proposed replacement meet the scheme rules. Tenant income is not the general BUS test; installation suitability, ownership, existing heating and technology matter. The installer applies on the owner’s behalf, and Ofgem makes the scheme decision.
If the rental is in England, has an EPC from D to G and its tenant household meets the income, benefit or qualifying-postcode route, check the Warm Homes: Local Grant application guidance. The council assesses the home and may include an air-source heat pump, insulation, controls or other measures. The tenant does not pay for agreed work, but the landlord may have to contribute. A D rating alone is insufficient: the household and local delivery must also qualify. Our Local Grant eligibility guide covers that council process in greater detail.
If the owner’s only immediate aim is a lodged EPC C, first compare the evidence-led D-to-C route. Existing construction records, accepted measured evidence or proportionate small measures may matter more than a heating replacement for that particular certificate. An accredited assessor must accept the relevant evidence and lodge a new EPC; testing or a consultant’s model alone does not change the register.
How the two funding routes differ
Boiler Upgrade Scheme: owner-led decision, installer-led application
BUS is available in England and Wales for eligible property owners, including owners who rent a home to tenants. The owner chooses whether to seek a suitable low-carbon heating installation. An MCS-certified installer designs and quotes for the system, checks eligibility and submits the application. Ofgem’s property-owner page explains that the installer claims the grant after installation. The grant reduces the eligible installation price; it is not money paid to the landlord to spend elsewhere. For the heating design itself, see our heat-pump decision guide.
As checked on 17 September 2026, the standard support is £7,500 for an eligible air-to-water or ground-source heat pump, £2,500 for an eligible air-to-air heat pump and £5,000 for eligible biomass. A £9,000 amount may apply to specified off-gas-grid air-to-water or ground-source installations under the uplift available until 31 March 2027. The official scheme page lists the current BUS grant values and technology limits. Ask the installer for an itemised quote showing the grant, the owner’s contribution and any separate radiator, cylinder or electrical work. Do not treat the maximum grant as a zero-cost installation.
The existing heating must qualify for replacement, and the property and proposed technology must pass the detailed rules. Most new builds, social housing and homes that have already received government support for a heat pump or biomass boiler are excluded. BUS does not pay for an ordinary replacement gas boiler. A rental address and a D-rated EPC do not themselves establish BUS eligibility. Have an installer check the actual system, heat loss, available space, hot water and tenant access before assuming the grant applies.
Warm Homes: Local Grant: household-led entry, council-led package
The Local Grant starts with the resident and property in England. Government guidance says the home must be privately owned, have an EPC of D, E, F or G and meet a household route: income usually £36,000 or less, qualifying benefits or an eligible postcode. A council with funding available arranges a survey and confirms the package. Its July 2026 policy guidance says upgrades are tailored to the individual home. An air-source heat pump is possible where suitable; the landlord cannot select one from a menu or secure a grant simply by ordering it.
Discuss the application with the tenant before requesting financial or benefits information. The resident can use the official application route; the council or authorised delivery partner verifies eligibility and arranges the survey. The landlord supplies ownership and property consent, agrees access and checks any contribution in writing. Do not ask Cucumber Eco to certify a tenant’s eligibility: it can help the owner assess the property and compare routes, while the council makes the funding and measure decisions.
A council may propose insulation or controls before, or alongside, heating work. That can be the sensible answer if heat loss or the existing system makes a heat pump alone a poor package. Ask for the survey findings, measures, contribution, contractor, access plan and expected handover documents before agreeing work. Keep the tenant’s practical needs in the plan, including heating and hot-water continuity.
A decision sequence for a D-rated rental
1. Establish the real EPC gap
Read the current certificate and numerical score, not only the D band. Record any entries marked assumed, not inspected or not rated, together with insulation, glazing, heating and controls already present. The specialist EPC assessment service can identify which evidence is material and whether the next credible step is an accredited reassessment, a small measure or a more substantial project. Avoid a generic claim that a heat pump adds a fixed number of EPC points: certificate outcomes depend on the dwelling and the assessment methodology.
2. Identify who can qualify for which route
For BUS, ask whether the owner, property, existing heating and proposed installation meet the installer-led requirements. For the Local Grant, establish the nation, EPC band, tenant-led eligibility route, council availability and potential landlord contribution. If the home is in Wales, the England-only Local Grant is not an option, even though BUS may be. Do not ask a tenant to disclose detailed income to the landlord when the official or council route can handle the eligibility check.
3. Compare the net work, not only the headline grant
For a BUS quote, ask what the heating design includes, what is excluded, the grant value claimed and the owner’s net price. Consider radiator and cylinder changes, electrical capacity, external unit siting, maintenance and tenant access. For a Local Grant offer, ask what the council-approved package achieves, who installs it and what contribution the landlord must make. An apparently larger grant may still be the wrong route if it does not solve the property’s problem or the household does not qualify.
4. Confirm the certificate after the work
Neither grant application nor installation automatically changes a lodged EPC. Keep installation certificates, product specifications, photographs and any evidence an accredited assessor may accept. Commission a new assessment when appropriate and verify the lodged certificate before advertising a new band. If it remains D, use the result to understand the remaining gap rather than saying the scheme failed to deliver a promised C.
Where current and future rental rules fit
For covered private rentals in England and Wales, the present domestic MEES floor is EPC E unless a valid exemption applies; the current landlord guidance sets out the scope. The government has confirmed a higher-standard policy with a single compliance date of 1 October 2030, but implementing legislative steps remain. Its published response also describes recognition of an existing-style EER C certificate lodged before 1 October 2029 until that certificate expires or is replaced. That makes a credible route to a lodged C worth examining now, without turning every D-rated rental into an automatic heat-pump job.
BUS and the Local Grant should be viewed as property decisions, not shortcuts to legal compliance. A funded heating system may improve comfort and performance, but the final EPC depends on the whole dwelling and the accepted assessment inputs. A separate cost-cap or exemption question needs the current rules and property-specific advice; do not assume a grant award settles it.
What to send for a free first review
Provide the rental address, current EPC link or certificate, numerical score, existing heating type, recent works and any known evidence gaps. Say whether your aim is EPC C, a heating replacement, lower heat loss or a choice between funding routes. If a tenant-led scheme is being considered, note only that the resident wishes to check eligibility through the official route; do not send sensitive household details with the initial property enquiry.
Cucumber Eco can compare the likely EPC route and explain what to ask the installer or council. The first property assessment is free and without obligation. Where a specialist D-to-C assessment route is appropriate, the scope and written commercial terms are agreed separately; a grant or heating project is not automatically part of that offer. Start your free EPC assessment before paying for major heating work solely to pursue a certificate band.
Frequently asked questions
Can a landlord claim the Boiler Upgrade Scheme for a rented home?
Yes, a privately rented property can be considered under BUS. The owner, property, existing heating and proposed installation must meet the scheme rules. An MCS-certified installer submits the application, and Ofgem decides eligibility; the D-rated EPC by itself does not qualify the home.
Does the tenant have to be on a low income for BUS?
BUS is primarily a property, ownership and technology route, rather than a tenant income-tested grant. The Warm Homes: Local Grant has a household eligibility test as well as an England-only, D-to-G property test. Check the live scheme rules before committing.
Will Warm Homes: Local Grant pay for a heat pump in every D-rated rental?
No. The tenant household must qualify, the local authority must have a delivery route, and its survey determines suitable measures. It may recommend insulation, controls or another package. A landlord contribution can apply to privately rented work.
Will a heating grant get my rental from EPC D to C?
No scheme can promise that result. A heat pump’s effect depends on the property and the applicable EPC calculation. Get a property-specific review before work and an accredited assessment afterwards; only a lodged certificate establishes the new band.
