Oil Boiler Ban: What Changed About the 2035 Plan?

Oil boilers, which run on heating oil, are a common source of central heating and hot water in rural properties that are not connected to the gas grid. There is no confirmed 2035 ban on installing or replacing oil boilers in existing homes in England under current government policy. For anyone assessing an investment property, the heating system is therefore a current cost and condition question rather than a fixed 2035 replacement deadline.

Below, we cover what's changed and how this can impact homeowners and buy-to-let investors, especially in rural areas where investing in holiday lets and older properties may be reliant on this important method of heating.

Article updated: July 2026

Timeline of the Oil Boiler Ban

StageWhat was proposed or confirmedStatus now
Original proposalThe previous government planned to phase out new and replacement oil, LPG and coal heating systems in off-gas-grid homes in England from 2026.Superseded by its later policy change.
2023 changeThat government moved its proposed start date to 2035 in a policy announcement.Not confirmed by the current government.
Current positionThe current government's January 2026 answer says future heat-decarbonisation decisions will use the available evidence.No confirmed 2035 oil-boiler ban for existing homes.
Current directionThe Warm Homes Plan funds cleaner heating and home upgrades.It does not set a 2035 oil-boiler ban. Policy on gas boilers is separate.
Long-term targetThe government remains committed to decarbonising heat as part of the UK's net-zero housing transition.The route and timetable for oil-heated homes are not settled.

The widely repeated 80% figure was not a target for 80% of oil-heated homes to replace their boilers. It came from the previous government's one-fifth exemption estimate for its proposed fossil-fuel boiler phase-out. The current government's latest position does not set an 80% phase-out target for oil boilers.

A domestic oil boiler heating system.

What Is the Current Oil Boiler Policy?

The government's latest position does not confirm an oil-boiler ban date for existing homes in England. Its current strategy is to support cleaner heating and energy-efficiency upgrades through the Warm Homes Plan. Heating choices may still affect the energy performance rating of a buy-to-let property, but that is separate from a fixed oil-boiler phase-out date.

Key points include:

  1. No forced removal: The government has said it will not force anyone to rip out a working boiler, in its official answer.
  2. No confirmed 2035 replacement rule: The current position does not say every oil boiler replaced from 2035 must be swapped for a low-carbon system.
  3. Low-carbon support: The Warm Homes Plan supports heat pumps, heat networks and other home upgrades as the government reduces reliance on fossil fuels.
  4. Alternative technologies: The government is still examining options for the minority of properties that may not suit heat pumps or heat networks through its clean-heating consultation.

Impact on Homeowners and Buy-to-Let Landlords

The government's current position does not confirm a phase-out date, which changes the immediate picture for homeowners and landlords. Key impacts include:

When comparing a rural buy to let property for sale, the useful evidence is the boiler's age and condition, recent oil usage, maintenance record and the cost of the practical alternatives for that building. A below market value property can still carry a significant heating-system cost, so the purchase discount and the upgrade budget are separate figures.

  1. No fixed 2035 deadline: The current government answer does not set a date when existing oil-heated homes must change their heating system.
  2. Working boilers: The government has said it will not force households to remove a working boiler in the same official answer.
  3. Replacement options: Heat pumps are the main low-carbon technology in the Warm Homes Plan. Biomass, heat batteries and renewable liquid fuels are among the alternatives in the government's clean-heating consultation.
  4. Potential Cost Implications: In the long term, there may be costs associated with transitioning to low-carbon heating systems.
  5. Property Value Considerations: Future buyers may factor in the heating system's ongoing maintenance and fuel usage cost when purchasing properties with oil boilers. This could affect the property valuation. Either positively if it provides a saving, or negatively if it creates an increase in outgoings for the homeowner or tenants.

What Should a Property Buyer Check?

An oil-heated property needs the same evidence-led review as any other building system. The absence of a confirmed 2035 ban does not remove the current cost, condition or safety questions.

If records are incomplete, current inspection findings and written quotations provide a clearer purchase budget than assumptions based on the boiler's age, the asking price or a possible future policy change.

Boiler, Tank and Pipework Condition

Record the boiler's make, model, age and visible condition, then identify the oil tank's age, material, location and capacity. Check whether the tank and supply pipe show signs of damage, corrosion, leakage or makeshift repairs. The boiler and tank are separate assets, so a working boiler does not prove that the storage system is in good condition. A current inspection and quotations are more useful than relying on a general estimate for a replacement.

Service Record and Recent Oil Use

Ask for service records, repair invoices and recent oil-delivery statements. Together, these show whether the system has been maintained and give a property-specific view of fuel use. Delivery frequency on its own is not a running-cost comparison because occupancy, thermostat settings, insulation and weather all affect demand. For a let property, compare the records with the tenancy history and the periods when the building was occupied.

Heat Loss and Practical Alternatives

A heat pump quotation is only one part of the comparison. Establish the building's heat loss, radiator or underfloor-heating requirements, electrical capacity and the space available for equipment. Older rural properties may also need fabric improvements. The government's Warm Homes Plan recognises that the practical route varies by property, while its consultation is still examining alternatives for homes that need a different solution.

Purchase Budget and Grant Eligibility

Keep the purchase discount, current repair cost and possible future upgrade as separate figures. Confirm grant eligibility against the scheme rules that apply when the work will be completed, not when the property is first viewed. The Ofgem scheme page says the £9,000 Boiler Upgrade Scheme uplift is available from 21 July 2026 until 31 March 2027, so any purchase budget that includes it depends on the property's eligibility and the scheme timing.

Government Grants and Financial Support

To assist with the transition to low-carbon heating systems, the government has introduced several support schemes:

SchemeCurrent positionTiming
Boiler Upgrade SchemeEligible off-gas-grid homes in England and Wales replacing oil heating with an air-to-water or ground source heat pump can receive £9,000 under the current grant notice.Available from 21 July 2026 until 31 March 2027, per the Ofgem scheme page.
Domestic Renewable Heat IncentiveThe Domestic RHI is closed to most new applicants. Existing participants can continue to receive payments under the scheme rules.Closed to most new applicants on 31 March 2022.
Energy Company Obligation (ECO4)Supports energy-efficiency measures for low-income, fuel-poor and vulnerable households under Ofgem's ECO guidance.Runs until 31 December 2026 after a nine-month extension.
Warm Homes PlanThe current plan funds cleaner heating and home upgrades beyond the current schemes.Eligibility and grant levels can change.
a model of a home wrapped in a scarf on a radiator

Oil Boiler Alternatives

Several alternatives to traditional oil boilers are available:

OptionCurrent policy positionProperty evidence to compare
Heat pumpsThe main low-carbon alternative in the Warm Homes Plan, which says most rural homes are suitable while recognising that a minority need other solutions.Heat loss, emitters, electrical capacity, space, quotation and grant eligibility.
Biomass boilersThe current grant notice includes £5,000 for eligible biomass installations.Fuel storage, delivery access, maintenance, emissions rules and installation cost.
Renewable liquid fuelsHVO may have a role, but the government has not confirmed it as a future compliance route. Decisions will follow further evidence in the clean-heating consultation.Fuel availability, verified compatibility, servicing and current running cost.
Hybrid systemsStill being examined for properties where a standalone heat pump may not be the best fit. This is consultation work rather than settled policy.Heat-loss design, control strategy, remaining fuel use and whole-system cost.

Frequently Asked Questions

Are Oil Boilers Being Phased Out?

No current policy sets a 2035 removal deadline for existing oil boilers. The government has said it will not force anyone to rip out a working boiler in its official answer.

When Will Oil Boilers Be Banned?

There is no confirmed date for banning oil boilers in existing homes in England. The government's January 2026 answer says the previous government planned to end new and replacement oil-heating installations from 2035, but the current government will use the available evidence to make future heat-decarbonisation decisions and will not force people to remove a working boiler. Future heating rules could change, but there is no confirmed deadline now.

What if I live in a rural area without access to mains gas?

The Warm Homes Plan says most rural homes can use a heat pump and recognises that a minority may need alternatives. The government is examining renewable liquid fuels, biomass, heat batteries and other options through its clean-heating consultation.

Are there any exemptions to the ban?

The government's current position does not confirm a 2035 ban, so there is no current set of 2035 exemption criteria. The previous government's proposal expected about one-fifth of homes to be exempt.

What options are available when an oil boiler needs replacing?

The available routes include another oil boiler, a heat pump and, for some properties, biomass or other low-carbon systems. The current position does not set a 2035 replacement mandate. The current grant notice sets a £9,000 grant for eligible oil-heated off-grid homes moving to an air-to-water or ground source heat pump, and the Ofgem scheme page says the uplift is available until 31 March 2027.

How do running costs compare between oil boilers and alternatives like heat pumps?

There is no single fixed comparison. Running costs depend on the property's heat loss, the system's efficiency and the fuel or electricity tariff. The Warm Homes Plan says technology choices and potential savings vary by property, so current quotations and a property-specific heat-loss assessment matter more than a general comparison.

Conclusion

The previous government proposed ending new and replacement oil heating systems in existing English homes from 2035. The current position does not confirm that deadline.

The current approach centres on grants and support for cleaner heating. For eligible oil-heated off-grid homes, the most concrete change is the £9,000 Boiler Upgrade Scheme grant set by the grant notice. Ofgem's Boiler Upgrade Scheme page says this uplift is available from 21 July 2026 until 31 March 2027.

Heating costs and suitable alternatives still vary by property. The current government position sets no working-boiler removal date or 80% oil-boiler phase-out target, and says future policy decisions will be based on the available evidence.

Ready to buy property?

Browse investment properties with prices and gross yields shown for each opportunity.

Get property alerts
Browse investment properties