The Government Grants for Home Improvements and Renovations in England

1. Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme is the government’s flagship grant ( The Government Grants for renovations ) for replacing fossil-fuel boilers with low-carbon heating systems.

What you get:

• £7,500 for an air-source or ground-source heat pump.

• £5,000 for an eligible biomass boiler.

• Scheme open until 31 December 2027.

👉 Apply for the Boiler Upgrade Scheme – gov.uk

Renovation Benefits

When adding a basement conversion or carrying out a full property renovation, heating systems are often upgraded. Installing a heat pump at this stage is much easier and less disruptive than retrofitting later — and with BUS funding, it’s also far more affordable.

Example: A London Terraced House in Islington

• Average cost of air-source heat pump: £12,000 – £15,000

• Grant contribution: –£7,500

• Net cost to homeowner: £4,500 – £7,500

Here, a homeowner planning a full renovation slashed the upfront cost of switching to low-carbon heating by more than half.

2. Great British Insulation Scheme (GBIS)

The GBIS is designed to improve insulation in the UK’s least efficient homes.

What you get:

• Free or discounted loft, cavity wall, or solid wall insulation.

• Runs until March 2026.

👉 Great British Insulation Scheme – Ofgem

Renovation Benefits (The Government Grants for Home Improvements)

Insulation is the backbone of any successful loft conversion, house extension, or refurbishment. For homeowners, GBIS can directly reduce construction costs while ensuring new living spaces are energy efficient.

Example: A Victorian Semi-Detached in Clapham

• Cavity wall insulation cost: £2,000 – £3,000

• Loft insulation cost: £600 – £1,000

• GBIS funding: often covers the full cost for eligible homes

In this case, the insulation work was fully funded, leaving the homeowner free to invest in a house extension that benefitted from a warmer, more efficient property overall.

3. Energy Company Obligation (ECO4)

ECO4 is targeted at low-income households and requires energy suppliers to fund upgrades.

What you get:

• Free insulation, new heating systems, or whole-house retrofits.

• Fully funded for eligible households (no upfront costs).

• Runs until March 2026.

👉 Find Energy Grants for Your Home – gov.uk

Renovation Benefits

For families planning home improvements or refurbishments in older London properties, ECO4 can transform the energy efficiency of a home before further structural works take place.

Example: A South London Maisonette in Lewisham

• EPC rating: F

• Eligible upgrades: full loft insulation, new central heating system, solid wall insulation

• Grant contribution: 100% funded by ECO4

This meant the family received a whole-house retrofit free of charge, dramatically improving comfort and efficiency before moving on to a loft conversion.

4. Warm Homes: Local Grant (London’s “Warmer Homes”)

This scheme, delivered by local authorities, is especially relevant for homeowners in London.

What you get:

• Up to £30,000 of free upgrades (insulation, heat pumps, solar panels, smart controls).

• Private landlords may receive 50% funding (up to £15,000) for multiple properties.

• Runs until March 2028.

👉 Apply for Warm Homes: Local Grant – gov.uk👉 Warm Homes London – GLA

Renovation Benefits

For large-scale projects like house extensions, basement conversions, or full property renovations, this scheme can cover insulation and renewable energy measures, freeing up budget for structural works.

Example: A Penge Property in Bromley

• Estimated upgrade costs: £20,000 – £30,000

• Grant contribution: Up to £30,000 for owner-occupiers

• Net cost: potentially £0

Here, a homeowner combined a basement conversion with external wall insulation and a new heat pump — almost entirely funded through the grant.

5. Disabled Facilities Grant (DFG)

The DFG is a means-tested grant for accessibility adaptations.

What you get:

• Up to £30,000 in England.

• Covers works like stairlifts, wet rooms, ramps, or even small extensions for accessible bedrooms.

👉 Help with Home Improvements – Citizens Advice

Renovation Benefits

For homeowners planning extensions or refurbishments to accommodate elderly relatives or disabled family members, this grant can significantly reduce costs.

Example: A Ground-Floor Extension in Kensington

• Estimated cost of extension + wet room: £45,000 – £55,000

• DFG contribution: Up to £30,000

• Net cost to homeowner: £15,000 – £25,000

Here, the DFG made a crucial house extension project financially viable, ensuring the homeowner could live independently.

How to Apply for Grants

1. Check eligibility: Look at your EPC rating, income, and benefits.

2. Gather documents: EPC certificate, proof of income, tenancy/ownership papers.

3. Apply via the right channel:

   • Installer (BUS, GBIS).

   • Energy supplier (ECO4).

   • Local authority (Warm Homes, DFG).

4. Home survey arranged: Council or installer inspects property.

5. Approval & works scheduled: Funding paid directly to installer/council.

👉 Start here: Find Energy Grants for Your Home – gov.uk

Making Grants Work With Renovation Projects

Government funding is not just about standalone upgrades. When combined with house extensions, loft conversions, basement conversions, or full property renovations, they:

• Cover the essentials (insulation, heating, accessibility).

• Free up budget for design and finishes.

• Improve EPC ratings, boosting property value.

• Deliver sustainable results with financial savings.

At LACD Design and Build, we integrate these opportunities into our construction planning, ensuring every client benefits from the maximum available support.

Conclusion: Smarter Renovation with LACD

Government grants are a rare opportunity to make your home improvements more affordable and sustainable. For London homeowners, schemes like the Boiler Upgrade Scheme, GBIS, ECO4, Warm Homes Local Grant, and DFG can cover insulation, heating, and accessibility while you invest in extensions, loft conversions, basements, or full property refurbishments.

By working with a trusted construction company in London like LACD Design and Build, you can align your renovation with these schemes for the best results — creating a home that’s modern, energy-efficient, and built for the future.

👉 Thinking about a project? Contact LACD Design and Build today to explore how grants could support your next house extension, loft conversion, basement conversion, or full property renovation.