More than one million households in the UK have oil central heating. This makes up around 5% of homes in the UK and is particularly common in rural areas that aren’t connected to the mains gas grid.
So, if you’re looking for the perfect, quiet, rural home – chances are you might be looking at buying a house with an oil tank. In some cases, this can be a great thing, as oil heating systems can often be cheaper than gas or electricity. But it does bring up a new set of considerations you must address before you buy.
That’s where we’re here to help. In this guide, we’ll cover everything you need to know about buying a house with an oil tank in the UK, including assessing the tank’s condition, understanding insurance, and the costs involved.
Look at the location and accessibility of the oil tank
One of the first things to look at when considering buying a house with oil heating is to look at the location of the tank itself and how easy it is to access. Most tanks will be in the garden, but you might find some within an outhouse or garage.
When we bought our current home, it relied on an oil heating system. The tank was located next to the outdoor seating area, which wasn’t ideal. The previous owners built a little fence, so the tank wasn’t in view when we sat out.
The upside of that location was that it was very easy to access.
Regulations for residential oil tanks
The placement of a tank needs to comply with building regulations by being:
- Placed on a flat surface to prevent spills
- Supported by a sturdy base like concrete or stone
- At least 1.8m from non-fire-rated structures or eaves
- At least 760mm from non-fire-rated boundaries like wooden fences
- At least 600mm from trees or shrubs outside the boundary
Because our oil tank was installed before these building regulations came in, it was too close to the house. This didn’t just worry us in terms of safety. If we had to replace it, we would have to find another place for it, which would have increased the costs.
If the tank is outdoors, Banuta and Tarquini (2010) also recommend double-checking the temperature gradient of the area. Changes in the temperature can encourage condensation and corrosion. These can result in higher chances of oil spills.
Mandatory bunding for new tanks
All new domestic oil tanks are now required to be bunded—essentially placing an oil tank within another tank for leak protection.
As a result, some older tanks might not be as leak-proof. If you need to replace an older tank, you’d have to get it bunded.
As part of your paperwork, you should have a registered OFTEC (Oil Firing Technical Association) certificate to prove it was installed following building regulations.
Consider your oil delivery access
Aside from the location, you need to consider how easy it is to access when it comes to delivery.
The drivers will need to be able to access this tank, and you don’t want them draping a hose through your home. More importantly, some suppliers may refuse to deliver if they have to pass through a house.
The easier it is to access, the easier you can set up a delivery schedule – especially if you don’t need to be around when they fill it up!
Inspect the state of the oil tank
Just like you would review the condition of any other part of your home, you need to look at the oil tank carefully. If possible, ask for documentation on previous servicing and repairs by OFTEC engineers.
Some red flags to look out for are rust, cracks, or bulges. These could equal potential leaks or poor maintenance.
You also need to find out the oil tank’s age. Expect a regular lifespan of 10 to 15 years, with some lasting up to 20.
If the oil tank is old, you need to factor in the expense of replacing it, which can range between £1,500 and £4,000.
Assess the condition of the boiler and heating system
Apart from the oil tank itself, you need to check the if boiler and heating system are perfectly functional. Here, you’ll need to ask:
How old is the boiler?
Typically, condensing oil boilers last around 15 years, getting less efficient the older they are. If your boiler is on the older side, you will need to prepare for potential replacement costs of £2,500-£4,000.
Do you have the building regulations compliance certificate?
This certificate proves that the boiler was installed according to building regulations. It’s an important document to get a hold of before you invest.
When was it last serviced?
Residential oil boilers are often associated with carbon and sulfate emissions (Hays et al., 2008). These by-products have been closely linked with respiratory problems such as bronchitis and asthma (American Chemical Society, 2008).
With these health concerns, oil boilers should be serviced annually by OFTEC-registered engineers to make sure that they are performing efficiently and safely.
Regular servicing will show that the system is being taken care of and should be in good condition.
Do they have the latest service reports?
These reports will prove that the boiler was recently serviced by an OFTEC engineer, giving peace of mind about its condition.
The more information you can get, the more confident you can be about the boiler’s condition. The fact that this type of documentation is available makes buying a house with an oil tank in the UK easier.
And speaking of paperwork, make sure that you get every document you need with this guide to the 15 legal documents you need when buying a house in the UK.
Check if you can get insurance
Don’t assume that regular home contents insurance will cover oil heating systems. Many insurers don’t cover this system as standard, and may only offer very limited coverage up to a set price between £1,000 to £2,000.
Before you consider buying a property with residential oil heating, you need to consider what insurance coverage you’ll get and factor those costs into your overall budget.
We asked the previous owners where they got their home insurance and what they paid. This gave us an idea of costs and which insurer we could use.
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Crunch the numbers: working out the cost of oil
Just like you need to calculate your monthly bills and expenses before moving, you need to work out how much you will need to spend on oil.
Now, the price of oil changes and can vary by region. In January 2025, the average cost of oil was 65p per litre. The average household typically uses around 2,500 litres a year, filling up the tank 2 to 3 times.
Using that average, oil costs will reach £1,625 per year, excluding delivery fees. However, this could be higher if oil prices rise, or you fill up your tank more often.
To get a more accurate measure of these costs, you should ask the current homeowners:
- how frequently they fill up their tank,
- their annual usage,
- and how much it currently costs them.
We got a very valuable tip from the sellers. They said they try to fill up the tank in the summer when oil prices tend to be lower. While it still meant we had to buy oil during the more expensive winter months, it did reduce the costs a bit.
Lastly, before you move in, check if the tank needs to be filled when you arrive – so you are prepared for any costs upfront.
Research oil suppliers
Just like how you can go with a variety of energy companies, you will have a choice of oil suppliers if you purchase a home with an oil tank. So, it’s important that you look into potential suppliers in that area and how much they charge for delivery.
You might also want to ask what supplier they currently use, as you might want to continue using them in the future.
The pros and cons of buying a house with an oil tank
If you’ve never lived in a house that uses an oil heating system before, buying one can be offputting.
Like anything, there are downsides to oil heating. You will need to ensure the tank and boiler are regularly maintained and serviced by OFTEC engineers.
You’ll schedule regular oil deliveries to fill up the tank – and it will be your responsibility you don’t run low. And for those who want to use more sustainable energy solutions, oil heating does produce carbon emissions, which might not be for you.
This is why we eventually replaced our oil boiler with a heat pump. But we had to wait for two years before we could afford it.
However, there are a lot of advantages to oil heating.
Firstly, it can be more economical than gas or electricity, particularly in rural locations.
Modern oil boilers are also efficient. In other words, your home stays warm without excessive fuel consumption while your bills lower.
Oil heating is also more reliable than grid-dependant methods. You won’t suffer from power outages in your area. You, in effect, control the power, so you don’t have to rely on others.
| Pros of oil heating | Cons of oil heating |
| Cost-effiective, especially in rural areas | Cost-effective, especially in rural areas |
| High efficiency | Need to organise oil delivery |
| Reliable | Produces carbon |
We’ve got your back when buying a house with an oil tank – or not
A property with an oil heating system can put some buyers off. In particular, an older tank or boiler will need expensive repairs or replacement.
But the key to making any decision while avoiding the top mistakes when buying a house is information.
Using the above tips, you can carefully consider the pros and cons of buying a house with an oil tank in the UK and whether this move is ultimately for you or not.
We loved the house and the rural location, and to get it we had to accept oil central heating. By following the tips we described above, we bought the house confidently despite having no experience with an oil tank.
Whatever you choose, and no matter what stage of the buying journey you’re at, we’ve got all the tips, tricks and advice you need at PropertyRoad.
