Off-Grid Bargain or Hidden Cost? How Gas Connection Fees Affect Property Investment Returns

It's cheap because it has no gas connection, right?

So why should you care? Well, because it might cost you more than you think.

You might be surprised to find out that the gas connection price for your property could be more than you think. From digging up roads to installing new heating. It's something to consider before you think you are making a great bargain.

Topics covered:

• Why You Should Reconsider the Discount
• How Much Does It Cost to Connect Your House?
• Calculating Your Returns
• Is It Worth It to Connect to Mains Gas?
• Due Diligence on Viewing
• Conclusion

Why You Should Reconsider the Discount

No mains gas does not necessarily mean it will be a bad buy. Many homes rely on electricity or another type of heating source. It can work just fine for some tenants.

If you are replacing your heating or want a type of heating your tenant may not enjoy, that's when you should be concerned.

This scenario occurs more than you would think. The House of Commons Library released an article on 6 August 2026, stating that there are an estimated 16% of domestic properties that are not connected to the gas grid across Great Britain in 2024. The figure covers homes both near and far from gas mains, so it does not show how many can be connected.

Would the property be selling cheaper due to these factors? Compare other houses on the market and see if you really are getting a deal by purchasing off-grid.

One property with good quality heating may not have the same issue as a house with old heating that requires replacement and no gas available to connect to. These scenarios could cost you significantly more than others.

Assess your tenant's needs and current heating source.

How Much Does It Cost to Connect Your House?

Just because there is a gas main running through the road, doesn't mean you can plug your home in. You will need to speak to your network provider and they will determine if your house can be connected and how much this will cost you.

Your network provider will determine the distance from your home to the main. And if there is anything in between, i.e road works, pavements, hard standing etc. There are many things to consider when digging up someone else's garden, not to mention road work.

To help you understand more about what may be included, see the full breakdown. Keep in mind that these prices may vary from property to property, but give you an idea.

These are a few things to keep in mind when budgeting:

• Connecting to your network provider: Digging, connecting to the mains, reinstating roads or hard standing.
• Installing a gas meter: You will need to organise a gas meter with an energy supplier, the meter should be arranged with an energy supplier while organising the network connection, helping avoid delays..
• Installing a gas system into your property: Pipes, boiler, radiators etc.
• Any delays: There can be delays when installing, allowing for this cost may be beneficial to you when renting or selling the property.

As advised by Ofgem, ask your network provider what costs are contestable. There may be a company that can install these services for a cheaper cost, other services will only be provided by your network provider.

Remember you will need a Gas Safe registered engineer to install any internal pipework, boiler, etc. Connecting your home to the network provider on its own will not allow you to use a gas boiler.

Calculating Your Returns

As an investor, it's easy to calculate your returns off the cost of the property, rather than what you will be paying overall to make your property habitable.

If you have a budget for your boiler, it's good to know what it will cost to install it.

Once you know what your total cost to buy and prepare the property will be, calculate your expected return. You may be able to charge a higher rent if you have installed a gas boiler, but this will depend on your local market and comparable properties in your area.

Once you know your returns, decide if it's worth investing more into gas or going off-grid with your heating solution.

One thing to note when calculating your returns is:

Simple Payback Period

This will allow you to see how long it will take to recoup your cost if you decide to connect your house to gas, and compare this to your alternative heating solution.

For example, say the gas option costs £6,000 more than a workable alternative and generates £400 more in annual net cash flow. This gives an illustrative 15-year simple payback, rather than a guaranteed return. Again, this is an example, and it will depend on how much you spend and how much you increase your rental income by.

You may also want to factor in the value of your property, cost of financing, interest, and how the price of fuel will affect your returns over time.

Always know what your purchase price can be, factoring in all costs associated with the property. Spending more to make a property habitable, but not seeing your returns reflect it, can turn a profitable property into one you won't be happy with.

Is It Worth It to Connect to Mains Gas?

There are pros and cons to both, but it's important to weigh them up and compare your costs to your returns.

When thinking about connecting to mains gas, compare your end product with your alternative heating solution. You may choose to improve your insulation, add more heating and allow your tenant to heat with electricity, or replace your heating solution with a different option, such as a heat pump.

A lower gas price per kWh does not guarantee lower heating bills; compare the home's heat demand and each system's efficiency. Factors to consider are the quality of your insulation, the size of your home, etc.

Another factor to consider is if you have standing charges; gas tariffs can include a daily standing charge, while gas appliances have separate maintenance and safety-check costs. As a landlord, you will need to maintain the gas system and carry out annual gas safety checks.

If your tenant has an eligible system, they can apply for grants through the Boiler Upgrade Scheme in England and Wales. Depending on what heating solution you are looking to install, there are various amounts you can receive, including for some rented properties.

As you can see, there are costs to consider both ways, so compare your costs against each other and make the best decision for your investment.

Due Diligence on Viewing

Before you decide to buy a property, it would be wise to do some due diligence on connecting to mains gas.

During your viewing, you may see that the property is being heated by oil, or have heaters around the home, but there is no guarantee that the house can connect to mains gas, or you may need to dig through someone else's garden.

Some tips to remember:

• Enquire what your current heating system is, if the property is currently working, and if they ever had gas.
• Speak to your network provider to see if they can provide a quotation or assessment of your property. This will also give you an idea of what the price would be, and what your options are.
• Research your options: digging, reinstating, any road works, etc.
• Price your heating options, speak to your engineer about what would be best to install, and get some costs of an alternative solution.
• Factor in any delays or costs you may encounter, and calculate your max offer you would be willing to pay for the property.

Make sure you keep all estimates and what they may include. Prices can vary; if there is further work needed that has been missed in the quote, you may have to pay for it yourself.

Never let the discount deter you from doing your research; you could be faced with high costs when you have exchanged contracts.

Conclusion

As you can see, there are a few factors to consider when buying a property off grid. It's always important to factor in your costs and calculate if it's going to be a profitable purchase, once it's habitable for your tenant or buyer.

Sources

• House of Commons Library, "Households off the gas-grid and prices for alternative fuels" (supports the linked phrase "16% of homes", the 2024 Great Britain scope; the statistic does not establish whether individual homes can be connected) - https://commonslibrary.parliament.uk/research-briefings/cbp-9838/
• Ofgem, "Connect to gas or electricity" (supports network assessments, contestable work and separate gas meter arrangements) - https://www.ofgem.gov.uk/information-consumers/getting-gas-or-electricity-connection
• Ofgem, "Energy price cap unit rates and standing charges" (supports gas standing charges) - https://www.ofgem.gov.uk/your-energy-supply/your-energy-bill/energy-price-cap-unit-rates-and-standing-charges
• Health and Safety Executive, "Domestic gas: frequently asked questions" (supports Gas Safe registration for internal gas work) - https://www.hse.gov.uk/gas/domestic/faqs.htm
• Health and Safety Executive, "Gas safety - landlords and letting agents" (supports landlord maintenance and annual gas safety checks) - https://www.hse.gov.uk/gas/domestic/faqlandlord.htm
• GOV.UK, "Apply for the Boiler Upgrade Scheme: What you can get" (supports eligible grants for certain low-carbon heating installations) - https://www.gov.uk/apply-boiler-upgrade-scheme/what-you-can-get
• GOV.UK, "Apply for the Boiler Upgrade Scheme: Check if you're eligible" (supports eligibility of property owners, including some landlords) - https://www.gov.uk/apply-boiler-upgrade-scheme/check-if-youre-eligible