REVEALED: What the boiler replacement scheme change means for landlords

Landlords have more of an incentive to make green improvements following PM Rishi Sunak’s announcement that they can now claim £7,500 for a heat pump installation.

Under the Boiler Upgrade Scheme, the grant for an air source heat pump has been increased from £5,000, and from £6,000 for a ground source heat pump. The grant value for biomass boilers remains at £5,000.

The changes take effect from 23rd October and live vouchers remain worth the original value, although these can be revoked and a new application made for a voucher at the higher value after that date, according to the standards organisation MCS.

The boost comes as the government scrapped its policy to force landlords to upgrade the energy efficiency of their properties by 2028, but to continue encouraging them to do so where they can.

Landlords will only need to replace gas boilers with heat pumps once they have worn out and even then, not until 2035.

Outstanding recommendations

To be eligible for the Boiler Upgrade Scheme, a property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation.

Landlords need to contact installers to get quotes for the work; the installer will then apply on their behalf on the Ofgem website and the grant’s value is taken off the amount paid for installation.

The government reports that 22,857 voucher applications had been received by Ofgem up until 11th Sept this year.

Gas boiler replacements typically cost £2,000-£4,500 while heat pump retrofit costs vary widely, but costs can often exceed £10,000. However, companies such as Octopus Energy are offering installations from £3,000 in England after the grant, through the launch of its Cosy 6 model.

Read more about heat source pumps.