ECO4 Grant Landlord UK 2026 — Free Insulation & Heating Upgrades for Rental Properties

ECO4 — what works are funded and landlord eligibility

ECO4 funds a specific range of energy efficiency measures in eligible properties:

• Cavity wall insulation: One of the most commonly funded measures under ECO4. Cavity wall insulation involves injecting insulating material (mineral wool, polystyrene bead, or polyurethane foam) into the gap between the inner and outer leaves of a cavity wall. Suitable for most properties built between the 1920s and early 1990s. An installer can survey the cavity condition before work begins. Cost without grant: £1,500-£3,000 depending on property size
• Solid wall insulation: For properties with solid walls (pre-1920s construction without a cavity), either external wall insulation (EWI — cladding applied to the outside of the building) or internal wall insulation (IWI — insulating boards fitted to the inside of external walls) can be funded. External insulation changes the appearance of the property and typically requires permitted development consent or, in conservation areas, planning permission. Cost without grant: £8,000-£25,000
• Loft insulation: Loft insulation (mineral wool rolled into the loft floor between and over the joists) is typically funded where the existing insulation is below 100mm. The recommended depth is 270mm. Cost without grant: £300-£700. Quick to install and immediate impact on heat loss
• First-time central heating: ECO4 can fund the installation of first-time central heating (gas or oil boiler with radiators and controls) in properties that have no existing central heating. Not available for boiler replacements — only first installations. Particularly relevant for older properties in rural areas or urban terraces without mains gas heating
• Air source heat pumps: ECO4 funds air source heat pump (ASHP) installations as part of its low carbon heating strand, typically in properties not connected to the mains gas grid. An ASHP requires adequate roof or garden space for the external unit, and the property must have sufficient insulation and ideally underfloor heating or upgraded radiators to operate efficiently. The Boiler Upgrade Scheme (BUS) provides a separate £7,500 grant for ASHP installations not covered by ECO4

ECO4 tenant eligibility — who qualifies

ECO4 funding is primarily directed at low-income households — the tenant's qualifying status is the key criterion:

• Means-tested benefit recipients: Tenants receiving qualifying means-tested benefits automatically meet the ECO4 income criterion. Qualifying benefits include: Universal Credit (with a housing cost element or with a child or disabled child element); Pension Credit (guarantee credit); Income-based Jobseeker's Allowance; Income-related Employment and Support Allowance; Income Support; Housing Benefit; Child Tax Credit (where household income is below £31,000 per year); Working Tax Credit (where household income is below £31,000 per year)
• ECO4 Flex — local authority referrals: The ECO4 Flex route (formerly known as the Local Authority Flexible Eligibility or LAFE route) allows local authorities to refer households for ECO4 funding where the household is in fuel poverty but does not receive qualifying benefits. This includes households with low income, poor health, and high energy costs — even where no specific benefit is claimed. Landlords of properties occupied by vulnerable tenants should ask their local council housing team whether the ECO4 Flex route applies
• EPC rating requirement: In addition to tenant income criteria, the property must have an EPC rating of D, E, F, or G to qualify for most ECO4 measures. Properties with a B or C rating are generally ineligible — the scheme prioritises the least energy-efficient homes. This EPC requirement aligns with the landlord's need to improve properties below EPC C before the 2030 deadline
• Property type restrictions: ECO4 applies to residential properties — both owner-occupied and privately rented. There are no restrictions on privately rented properties accessing ECO4 funding where the tenant qualifies. The property must be the tenant's main residence. Short-term lets and holiday lets are not eligible
• Landlord consent and cooperation: For works to be carried out on a rental property, the landlord must give written consent to the installer. The installer will typically ask the landlord to sign a consent form before starting work. Landlords have the right to refuse works — but where the works would improve the EPC rating and help meet the proposed 2030 EPC C requirement, there is a strong incentive to cooperate

Great British Insulation Scheme (GBIS) — broader eligibility

GBIS offers insulation funding with wider eligibility than ECO4:

• GBIS Group A — means-tested: GBIS Group A covers households in council tax bands A-D (in England) that receive qualifying means-tested benefits. The qualifying benefit list is similar to ECO4. Eligible measures include: cavity wall insulation, solid wall insulation (internal or external), loft insulation, flat roof insulation, park home insulation, and room-in-roof insulation
• GBIS Group B — EPC-based: GBIS Group B is available to all households (regardless of benefit status) where the property has an EPC rating of D, E, F, or G, and is in council tax bands A-D (England). This is significantly broader than ECO4 — a landlord whose tenants are working professionals (not on benefits) can still access GBIS Group B funding if the property is EPC D or below and in council tax bands A-D. This is the most accessible route for most landlords
• GBIS eligible measures: GBIS covers insulation measures only (unlike ECO4 which also covers heating). The primary measure must be: cavity wall insulation, solid wall insulation (internal or external), loft insulation, flat or pitched roof insulation, room-in-roof insulation, or underfloor insulation. Secondary measures (secondary insulation, draught-proofing, heating controls) can also be funded alongside a primary measure
• GBIS application process: Unlike ECO4, GBIS does not require a local authority referral — householders (including landlords on behalf of tenants) can contact Ofgem-registered GBIS installers directly. The installer assesses eligibility, carries out an EPC survey if needed, and applies for the grant on the householder's behalf. There is no upfront cost to the landlord or tenant — the installer recovers the cost from the obligated energy company
• Combining GBIS and ECO4: In some cases, a property may qualify for both ECO4 and GBIS measures — ECO4 can fund heating measures (heat pump, first-time central heating) while GBIS funds insulation measures. An installer registered for both schemes can assess what funding is available and apply for the optimal combination

Interaction with the EPC C 2030 requirement for landlords

ECO4 and GBIS are the primary routes for landlords to fund compliance with the proposed EPC C minimum standard:

• The proposed EPC C requirement: The government has proposed (but not yet legislated) that all new tenancies in England from 2028 and all existing tenancies from 2030 must have a minimum EPC rating of C. This would replace the current EPC E minimum standard under MEES. Landlords with F and G rated properties are already in breach of MEES; properties rated D and E must be upgraded before 2028/2030
• Typical EPC gains from ECO4/GBIS works: Cavity wall insulation typically increases an EPC rating by 3-8 points. Loft insulation typically increases by 2-5 points. Solid wall insulation increases by 8-15 points. A combination of insulation measures can commonly take a property from EPC E (44 SAP) to EPC C (69 SAP) or D (55 SAP). The EPC improvement from funded works is assessed by the installer before work begins
• £3,500 cost cap for E, F, G rated properties: Under the current MEES regulations, landlords are required to spend up to £3,500 (including VAT) per property improving it to EPC E before letting. Where funded works (ECO4, GBIS) bring the property to EPC C or above at no cost to the landlord, the cost cap requirement is met without any landlord expenditure. This is the most cost-effective compliance route
• Timing — apply now, not in 2029: ECO4 runs until March 2026. Successor schemes are expected but not yet confirmed. GBIS has been extended but funding is not unlimited. Landlords with D, E, F, or G rated properties and qualifying tenants should apply for ECO4/GBIS assessment immediately rather than waiting — the scheme has finite funding and places the most cost-effective improvements within reach while it runs

How to access ECO4 and GBIS as a landlord — practical steps

The application process is tenant-led but requires landlord consent:

• Step 1 — Check tenant eligibility: Ask the tenant whether they receive any qualifying means-tested benefits (Universal Credit, Pension Credit, Housing Benefit, Tax Credits, Income Support, ESA, JSA). If yes, they likely qualify for ECO4. If not, check the property's EPC rating and council tax band for GBIS Group B eligibility
• Step 2 — Find a Trustmark-registered installer: Both ECO4 and GBIS installers must be registered with Trustmark (the government-endorsed quality scheme for home improvements). The Energy Saving Trust and GBIS website list accredited installers by postcode. Always use a Trustmark-registered installer — unregistered installers cannot apply for ECO4/GBIS funding
• Step 3 — Arrange a free survey: The installer visits the property (with the tenant's and landlord's agreement) to assess what measures are suitable and what funding is available. The survey is free and non-binding. The installer produces a schedule of works and confirms what will be funded. The landlord must give written consent for works to proceed
• Step 4 — Works and EPC update: If the landlord and tenant agree, the works are carried out by the installer at no cost (where fully funded). After completion, the installer commissions a new EPC assessment reflecting the improved energy efficiency. The new EPC is lodged on the national EPC register. The landlord should retain a copy of the completed works documentation and the new EPC
• Watch for rogue installers: The ECO4 and GBIS schemes have attracted some fraudulent operators claiming to offer 'free government grants' but then invoicing landlords or tenants for unlicensed works. Always verify installer Trustmark registration before agreeing to any works. Be cautious of door-to-door or cold-call approaches claiming to offer 'free government insulation' — always verify independently via the Trustmark website

Frequently asked questions