Property investors well-versed in the UK rural property market will know that heating oil is a common fuel source in rural and off-grid properties. Many period properties in rural areas will feature heating oil tanks.
Whilst heating oil tanks are a fantastic source of fuel and a great asset to a property, it’s important to be familiar with them before purchasing a property with one. It’s also important to be aware of what to look for during a property viewing when it comes to heating oil tanks.
Why heating oil tanks matter
If heating oil tanks are neglected or poorly maintained, then they can become an issue and an expense. The good news is that they are pretty easy to maintain with the right know-how. Arguably, the primary concern with oil tanks is leakage. A leaking oil tank can contaminate soil and groundwater, so in short, it can cause an environmental disaster. That’s why old or non-compliant tanks might need to be replaced or upgraded to meet current regulations.
It’s also important to note that mortgage providers and insurers may request extra documentation if you’re purchasing a property with an oil tank. They may want details of the oil tank’s age, condition and compliance with safety standards.
Where can I find a heating oil tank?
So, you’re viewing a property fueled by heating oil. Where can you find the heating oil tank? Heating oil tanks are always outdoors, unless in an outbuilding or the garage. Some tanks are even kept underground. Safety regulations state that they must be a certain safe distance from a house. Standard guidelines are typically as follows:
- At least 1.8 metres from non-fire-rated structures such as sheds and fences
- At least 0.76 metres from non-combustible structures such as brick walls
- At least 1.8 metres from openings such as doors or windows
They must be kept away from drains, water sources or flood-prone areas.
What are the red flags?
Once you’ve located the heating oil tanks, it’s time to take a closer look at it. Here’s what to look out for during your inspection.
Damage or corrosion
Take a close look at the tank, searching for any cracks, rust, bulging or oil staining. These can all indicate that a heating oil tank needs replacing and is no longer fit for purpose.
Rust spots, particularly on tanks above the ground, indicate a weak spot in their shell. This can cause leaks and spills. Rust can also develop on the inside of the tank, corroding it in a more insidious and unnoticeable way. Because this is harder to spot, this is often overlooked until the damage is irreparable and leaks have already occurred.
Breaching building regulations
As we mentioned previously, location matters. An oil tank’s location is governed by safety regulations. If a heating oil tank breaches these by being too close to the property or to drainage, it poses a contamination risk and needs to be replaced or relocated. Whilst relocation is possible, you should not relocate an oil tank yourself. Doing this without the help of a professional can be dangerous, so it’s highly recommended to hire an OFTEC-registered engineer.
The age of the tank
Heating oil tanks have a lifespan. This will differ between tanks, so a little bit of research might be needed to pinpoint this. You can ask the current homeowner or check date labels. However, you can expect its lifespan to be anywhere between 10 or even 20 years of use maximum. Even if a heating oil tank appears to be working perfectly at the end of its expected lifespan, it’s important to replace it. Trust us, it’s the more cost-effective route than recurrent repairs.
Lack of protective bunding
One of the most important safety features for an oil tank is bunding, which acts as a secondary containment system to catch spills or leaks. A bund is essentially a protective barrier that can hold at least 110% of the tank’s contents in the event of a failure.
If a tank isn’t bunded, any leak could quickly lead to contamination, making it non-compliant with building regulations or environmental guidelines. A bunded tank isn’t always necessary, but if the property lies within an Environmentally Sensitive Area (ESA), where stricter rules apply, then you should be particularly cautious.
Questions to ask the seller
Along with all your usual house-hunting questions, you should have some questions prepared specifically about the tank if you’re looking at a property that is heating oil-fueled. Here is some guidance below:
- When was the tank last inspected or serviced?
- Is it single or double-skinned? (bunded or non-bunded)
- Is there documentation available, such as an installation certificate or service reports?
- Has there ever been a leak or incident?
- Are there current insurance policies in place?
What should you do if you spot issues?
Let’s say you’ve spotted an issue with the heating oil tank, be that signs that it needs replacing or signs that it needs relocating. You may want to negotiate on the price of the property to compensate for any additional costs that righting the wrongs may occur. Alternatively, you could negotiate repairs on the condition that you’ll purchase the property.
Perhaps you’d like a professional to take a look before you commit. You can enlist a professional to test the heating oil tank and conduct a risk assessment. It’s also a good idea to request any documentation before proceeding with the purchase.
Be proactive when viewing or purchasing a property with a heating oil tank. A heating oil tank is not a minor detail – it deserves and requires some attention and inspection before you commit to anything. Seek advice and don’t overlook it.
