Selling a house with an oil tank

Sell your house with an oil tank confidently. Learn about regulations, insurance, buyer concerns, and how House Buyer Bureau helps you sell fast.

Selling a house with an oil tank

For many homeowners, the presence of an oil tank raises questions about safety, insurance, regulations and buyer confidence, which can make selling a house with an oil tank feel quite daunting.

Our experts have put together this guide to walk you through everything you need to know about selling a house with an oil tank, from understanding how they work, to overcoming common buyer concerns and even selling quickly if you just want to move into your new home.

Understanding oil tanks on residential properties

Domestic oil tanks are used to store heating oil which is then used to supply central heating and hot water in properties that aren’t connected to the gas grid. They’re most common in rural and semi-rural areas of the UK, where mains gas just isn’t available. The tanks themselves are usually made from steel or plastic and are installed either above ground in a garden – or sometimes underground.

While practical, oil tanks can be a sticking point when it comes to selling a home. That’s because buyers, solicitors and surveyors will want reassurance that the tank is safe, compliant and well maintained. If an oil tank is poorly positioned or leaking, it can lower your property’s value and it can also put off prospective buyers, meaning it can take you longer to secure a sale.

How close can an oil tank be to a house?

UK building regulations set strict rules on the placement of oil tanks. According to the Oil Firing Technical Association (OFTEC), a tank storing up to 3,500 litres must be at least 1.8 metres away from non-fire-rated buildings (including their eaves) as well as from doors or windows in a fire rated building, and 760mm away from boundaries like fences.

If it’s physically impossible to achieve these distances, the oil tank can be nearer provided there is a suitable fire protection barrier in place.

Buyers will want to see that your tank complies with regulations and a surveyor will flag any issues during the sale process.

Are oil tanks covered on house insurance?

Most standard policies will provide some level of cover, but it often depends on the insurer and the tank’s condition. Policies may exclude old or unmaintained tanks and some specifically won’t cover environmental damage caused by leaks. If you’re selling, it’s best to check your current insurance policy and be ready to show buyers that your tank has appropriate cover.

Getting insurance for domestic oil tanks are a concern for buyers because clean-up costs from an oil spill can be very high. The Environment Agency advises that even a small oil spill can cost thousands of pounds to fix.

Standard oil tank size for a house

Domestic oil tanks come in a range of sizes, but the most common household tanks in the UK hold between 1,000 and 2,500 litres of heating oil. Larger properties might have tanks up to 5,000 litres, while smaller homes may only need around 650 litres.

Why does this matter when selling a house with an oil tank?
Firstly, buyers will want to know how much it costs to fill the tank. With heating oil prices fluctuating, a 1,000-litre fill can cost upwards of £700.

Secondly, larger tanks may raise more compliance and safety issues, especially if they’re situated close to buildings or waterways.

Can you sell a house with an oil tank?

The good news is yes, you absolutely can sell a house with an oil tank. There’s no law preventing you from selling a property that has one installed. However, there are conditions you’ll need to be aware of.

Most importantly, the tank must comply with building regulations and environmental standards. If it’s in poor condition, leaking or not correctly sited, you may be forced to make repairs or upgrades before completing a sale. Surveyors will almost always highlight oil tanks in their reports and buyers may negotiate the price down if they think the tank could be a liability.

That said, many buyers in rural areas are perfectly familiar with oil heating systems. As long as your tank is safe, compliant and well maintained, it shouldn’t prevent you from selling your home.

Common issues and buyer concerns when selling a house with an oil tank

If you’re looking to sell a house with an oil tank, you should be aware of the most common buyer concerns. These include:

• Environmental risk – Oil leaks can contaminate soil and groundwater, and buyers fear being saddled with a costly clean-up.
• Maintenance costs – Tanks need regular inspections, servicing and replacing every 10-15 years.
• Insurance limitations – Some policies exclude oil-related damage.
• Old or non-compliant systems – A tank that doesn’t meet OFTEC standards may make a property unmortgageable until corrected.

All of these concerns can lower buyer confidence and result in delays, price reductions or even failed sales. To avoid this, it’s a good idea to have your tank inspected and serviced before putting your home on the market.

Providing buyers with an OFTEC certificate or maintenance history can make the process smoother.

Sell your house with an oil tank fast with House Buyer Bureau

If you don’t want the stress of surveys, negotiations or repairs, House Buyer Bureau offers a simple solution. We specialise in buying houses fast, including those with oil tanks. That means no estate agent fees, no uncertainty and no waiting around for a buyer who may be put off by the presence of a tank.

We’ve earned hundreds of positive reviews on Trustpilot, Google and on our own website, thanks to our transparent service and fair prices. We are also proud members of the National Association of Property Buyers and registered with The Property Ombudsman, giving you complete confidence.

Instead of months of worry, you could complete your sale in weeks. So if you’re selling a house with an oil tank and want a guaranteed, stress-free sale, House Buyer Bureau can help.

Chris

Chris

Chris has worked in property all his career, first as a successful estate agent before spotting a gap in the market for buying property directly from people looking for a simple, quick sale.

He has a passion for property and as an experienced valuer, has looked at well over 50,000 properties so far at HBB. He has extensive experience in property buying and regularly comments in the press on property matters, trends and promotes ways to simplify and speed up the selling process.

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