"The LiFePO4 batteries are the safest type of Lithium batteries as they will not overheat, and even if punctured they will not catch on fire. ... Due to the oxygen being bonded tightly to the molecule, there is no danger of the battery erupting into flames like there is with Lithium-Ion."
This is true but a bit confusing. LFP batteries _are_ lithium-ion batteries. They are just not LCO, LMO NCA or NMC chemistry. The only thing that really changes in all of these is the cathode:
https://en.wikipedia.org/wiki/Lithium-i ... ry#Cathode.
LCO (lithium colablt oxide) is worst for catching fire due to being highly exothermic, the other three are all much of a muchness, and it's really quite hard to set fire to LFP. You can chop one in half with a hacksaw and nothing much will happen (hmm, can't find 10-yr old youtube vid right now). But the electrolyte is still flammable so it's not impossible given the right sort of physical damage and enough heat.
I'm not worried about LFP packs in houses. I might be be if I had a Tesla pack - they are just about the only people putting non LFP cells in static batteries (there is one other supplier IIRC). As Gus say, TPTB will probably fail to distinguish and would give us blanket overweening rules as they have in New York (no house batteries allowed anywhere, at all) or Australia (strict rules about metal outhouses for batteries).
DIY deep 1960's house retrofit:
http://wookware.org/house/retrofit
MVHR, airtightness, IWI, EWI, 3G windows, 7kW PV, 16kWh battery, woodburner,
perimeter insulation, extension, garage conversion, UFH, 1200l water butts, garden veg