As you may have seen in the press in recent weeks liquefied natural gas (LNG) and domestic heating oil are not covered by the Ofgem energy price cap and the price of domestic heating oil has increased from around 60p per litre in 2024 to over £1 per litre currently. As a result the owners of many rural properties have seen their heating bills for this winter increase substantially and what do you need to consider if you're buying a rural property which is off-grid and heated by either LNG or oil?

First of all you should ask the seller to confirm the average cost of heating the property through the winter and providing hot water in the summer and then factor in the fact that the cost can fluctuate substantially depending on oil prices.

From a practical point of view, as well as the usual regulations regarding the siting of boilers and their flues, a property fuelled by LNG or oil it will have its own storage tank and this will need to comply with the relevant regulations regarding the siting of liquid fuel tanks and their support.  The regulations are intended to protect stored fuel from potential ignition sources and, in particular, tanks need to be at least 1.8m from: 

• The non-fire rated eaves of a building; 
• Any non-fire rated building or structure such as a garden shed; 
• Any openings such as doors and windows in a fire rated structure; and
• The flue of any boiler burning liquid fuel.

It is possible for an oil tank to be located in a garage or other outbuilding but in that case it will need to comply with specific requirements in relation to fire proofing.

The support for the tank should provide continual structural support  and be non-combustible and adequate for the weight of the tank and its contents. The support should also extend 300mm beyond the sides of the tank.

Whilst it is only compulsory in certain situations and parts of the country you may also want to consider ensuring that the tank is bunded so that any leak is contained within the the bunding

It is the responsibility of the property owner to ensure that their fuel tank is adequately maintained and you should get your heating engineer to check the tank as part of their annual service of the boiler. As you will appreciate oil spills can cause substantial environmental damage, especially if they contaminate groundwater supplies, and can be extremely costly to clear up and as the homeowner you will be responsible for any necessary environmental remediation. The cost of cleaning up any spills should be covered by your insurance but you should check this before committing to buy the property.  

Since 2002 homeowners in England and Wales have been required to notify the local building control department of any new heating equipment and where a boiler or fuel tank has been installed since then there should either be an OFTEC certificate whereby the installer self-certifies that the installation complies with the necessary building regulations or a building regulations compliance certificate.  We will ask for a copy of this 

When buying a property with liquid fuel heating we would also advise you to to get a specialist suitably qualified engineer to inspect the tank and related pipework to ensure that it does comply with current regulations and to provide a quote for any necessary improvements.