Free heat pump for a leasehold flat: is yours eligible?

This article separates what the scheme sources say from what your lease may say, and ends with a practical checklist. It is not legal advice. For planning and the other permissions, read permission for a heat pump in a flat; for the eligibility basics, see is my flat eligible for a free heat pump? and our guide to a free heat pump for flats, where your flat is eligible.

Can an eligible leasehold flat get a free heat pump?

It may, if your flat is eligible and any consent your lease requires is in place. We cannot tell you in advance that your flat qualifies. Two things decide it, and they come from different places:

• The grant. Ofgem runs the Boiler Upgrade Scheme. GOV.UK’s eligibility page covers ownership, the heating system being replaced and the property type, and says the installer applies on your behalf.
• Your lease. GOV.UK describes a lease as a legal agreement with the landlord. The grant sources we read do not say that a grant replaces any permission your lease requires.

The grant sources we read do not link the two questions, so treat them as separate. You can bring your lease to the free survey.

What the grant sources say, and do not say, about leasehold

We searched the text of the GOV.UK Boiler Upgrade Scheme pages (overview, what you can get, check if you’re eligible, how to apply), regulations 2, 3, 5, 14 and 15 of the Boiler Upgrade Scheme Regulations 2022, and Ofgem’s installer guidance V5.2 for the words “leasehold”, “freehold”, “freeholder”, “leaseholder” and “lease”. None of them appears in any of those sources. We did not search the other regulations, so this says only what those sources contain. It does not mean leaseholders are in or out.

What the sources do say is about ownership. GOV.UK says you are eligible for a grant if you own the property you are applying for, and gives examples in brackets: a business, a second home, or a property you rent out to tenants. Ofgem’s guidance says property owners must confirm ownership of the property (or co-ownership with agreement of all other owners) and consent for the installer to make a voucher application. GOV.UK’s own explanation of leasehold says you only own a leasehold property for a fixed period of time, with a lease from the landlord, sometimes known as the freeholder. Those pages do not connect the two ideas for the grant, so we cannot say how a leasehold flat is treated. It is sensible to ask your installer, and to ask for the answer in writing.

What the lease advice sources say

GOV.UK says most flats are leasehold, and that your lease will tell you what conditions you have agreed to, for example whether you need permission to make alterations.

The Leasehold Advisory Service (LEASE) publishes a guide on alterations. It says that, depending on your lease, you might need your landlord’s permission before making any alterations, and that this is the case even if you already have planning permission or building regulations approval. It describes what to look for:

• Which parts you own. Your lease should tell you which parts of the property you own and control (“demised premises”) and which the landlord owns and controls (“retained premises”). LEASE says you cannot make changes to the parts your landlord owns without their permission.
• What the lease allows. It might ban alterations, allow them, allow them only with the landlord’s written permission, or allow them only with a licence. If your lease says nothing about alterations, LEASE suggests getting professional advice.
• Specific clauses. LEASE says that even where alterations are allowed, other clauses can restrict certain work. Its examples include “no cutting of external walls”, which it says would prevent new openings, including for pipes, and it also lists changing the boiler system and installing a heat pump on the external wall.
• Written permission first. If your lease says you need written permission, LEASE says you must get it before starting the work, and not to rely on verbal consent.

On what happens when permission is asked for, LEASE says that if your lease allows alterations with the landlord’s consent, your landlord must respond in writing, give consent unless there is a reasonable reason to refuse, and state their reasons for refusing. It adds that the landlord does not have to do this if the alterations involve a part of the building they own or control, and that if your lease bans alterations, the landlord does not have to consider your request.

The statute behind part of this is section 19(2) of the Landlord and Tenant Act 1927. As it stands, it says that a covenant in a lease “against the making of improvements without a licence or consent” is deemed to be subject to a proviso that the licence or consent “is not to be unreasonably withheld”, with room for the landlord to require, among other things, payment of legal or other expenses properly incurred. Whether a particular heat pump installation counts as an “improvement”, and how the section applies to your lease, is a matter for a solicitor, and we are not saying it applies to you.

What ByEco says about leases and freeholders

These are ByEco’s own terms, not scheme rules.

• The offer box. The terms in the box at the top of this page say any lease or freeholder consent must be in place. The offer is ByEco’s own; the sections below explain what the grant itself says.
• The survey. According to ByEco’s brochure, the wall openings for its indoor units can still need permission from the council or the freeholder, so ByEco checks this for your building at the survey.
• The openings. The brochure says two circular openings are needed through the external wall, one for the air inlet and one for the air outlet, and that final sizes and positions are confirmed on site and set out in your quote and drawings. See heat pumps without an outdoor unit.

A practical checklist for getting your freeholder’s answer

1. Find your lease and read the clauses that could matter. Look for clauses on alterations, the external walls, windows and anything that passes through them, services such as pipes and electrics, and which parts are demised (yours) and which are retained (the landlord’s). The external wall is worth checking, because the brochure says the openings go through it.
2. Note who to ask. It may be your freeholder, or a managing agent acting for them. GOV.UK says you have the right to know the landlord’s (freeholder’s) name and address.
3. Tell ByEco you are a leaseholder when you get in touch. Say so at the start, so the free survey can look at the points your building raises.
4. Ask in writing. LEASE says to put your request in writing, date it and keep copies of letters or emails. It suggests including a clear description of the work, plans or photos, contractor quotes and insurance details, proof of planning permission or building regulation compliance, and a proposed timetable and contact details. The brochure says final opening sizes and positions are confirmed on site, so what you send may need updating.
5. Keep the answer in writing. LEASE says not to rely on verbal consent. If the freeholder asks for a fee or conditions, ask what the lease says about them before you agree.
6. Allow time. LEASE says a landlord does not have to meet a deadline you set or reply quickly, and suggests giving a reasonable period to respond, for example 2 weeks.

Shared ownership, new build and social housing

Shared ownership. GOV.UK says houses can be leasehold too, and usually are if they are bought through a shared ownership scheme. For the grant, the regulations exclude social housing, using the meaning in section 68 of the Housing and Regeneration Act 2008. Ofgem describes social housing as including housing provided by organisations at below market rent or through shared ownership schemes for people in housing need. The regulations we searched do not mention shared ownership, but Ofgem’s list of what an application must include has a declaration worded “that the property is not social housing or has shared ownership”, which is ambiguous. So treat a shared ownership flat as unlikely to qualify until the survey confirms it, and the offer box says shared ownership is not eligible.

New build and social housing. GOV.UK says you cannot get a grant for most new build properties or for social housing, and that new build properties still being built by the developer are not eligible. If you moved into a finished new build with a fossil fuel boiler, GOV.UK says you may be able to get a grant under the scheme. Tell us at the start which applies.

If you let the flat out, see heat pumps for landlords.

What the grant covers

GOV.UK lists £7,500 towards an air source (air-to-water) heat pump, and describes the scheme as a grant to cover part of the cost of replacing fossil fuel heating systems. GOV.UK says the installer will apply on your behalf on the Ofgem website, and that the value of the grant is taken off the amount you pay and shown on your quotation and invoice. ByEco’s offer for eligible 1 and 2 bedroom flats is described in the offer box at the top of this page. The quote you receive after the survey confirms whether anything is left to pay. For the detail, read our Boiler Upgrade Scheme guide.

Why timing matters: consent and the voucher clock

The Boiler Upgrade Scheme is not permanent. The sources say:

• Final date. The regulations say Ofgem must refuse to issue a voucher after 31 December 2029.
• Budget. Ofgem cannot issue new vouchers once the budget threshold is met. If the available budget runs out, Ofgem may operate a queue, ordered by when an application is deemed properly made. Separately, the Secretary of State may introduce a cap on the number of vouchers issued each quarter.
• Voucher validity. An air-to-water voucher expires at the end of the period of three months that begins with the date it is issued, and Ofgem says an expired voucher cannot be extended, although the installer can re-apply for a new one. GOV.UK words the limit differently, as 120 days from applying, so plan around whichever limit comes first.

Ofgem’s BUS monthly scheme update, with statistics to 31 October 2026 and last updated on 11 November 2026, lists £62,665,000 as the remaining budget for Year 5 (1 April 2026 to 31 March 2027). Ofgem’s footnote says that figure includes all undetermined applications and vouchers issued yet to be redeemed, and is a dynamic value. It is a snapshot, so check the latest report. We are not forecasting when funds might be used.

Why this matters to a leaseholder: LEASE says a landlord may not reply quickly, and the voucher period is limited. We read those together to mean it is sensible to ask your freeholder early: LEASE says to get written permission before starting the work, and if consent were still outstanding once a voucher was issued, the three months would already be running. That is our reading, not a rule from any source. The sources we read do not set out the order of steps for leasehold flats, so ask your installer. Asking for your free survey sooner means your application can be made while funding is available, if your flat is eligible. Rules and funding can change.

Where ByEco stands

Call 0161 710 4510 or use the contact page and tell us the flat’s area, that it is leasehold, and who your freeholder or managing agent is. The survey is free, and it is how we look at whether your flat may be eligible and what your building needs. See also our heat pumps and grants pages, or get in touch for your free survey.

Worth asking any installer: how is a leasehold flat treated for the grant, what do you need from my freeholder, when should I ask, and what does the contract say if consent is refused or the application is rejected? Ofgem says the installer’s ability to seek payment of the deducted amount then depends on the contract between you and the installer.

Sources

Every figure on this page was checked against primary sources on 12 November 2026. Grant rules, planning rules and prices change — if you are reading this much later, verify before acting.

• GOV.UK — Apply for the Boiler Upgrade Scheme: overview
• GOV.UK — Apply for the Boiler Upgrade Scheme: what you can get
• GOV.UK — Apply for the Boiler Upgrade Scheme: check if you’re eligible
• GOV.UK — Apply for the Boiler Upgrade Scheme: how to apply
• Ofgem — Boiler Upgrade Scheme guidance for installers V5.2 (PDF)
• Ofgem — BUS monthly scheme update
• legislation.gov.uk — Boiler Upgrade Scheme (England and Wales) Regulations 2022, regulation 2
• legislation.gov.uk — Boiler Upgrade Scheme (England and Wales) Regulations 2022, regulation 3
• legislation.gov.uk — Boiler Upgrade Scheme (England and Wales) Regulations 2022, regulation 5
• legislation.gov.uk — Boiler Upgrade Scheme (England and Wales) Regulations 2022, regulation 14
• legislation.gov.uk — Boiler Upgrade Scheme (England and Wales) Regulations 2022, regulation 15
• GOV.UK — Leasehold property: overview
• GOV.UK — Leasehold property: leaseholder rights and responsibilities
• Leasehold Advisory Service — Alterations and home improvements
• legislation.gov.uk — Landlord and Tenant Act 1927, section 19