Precast flues/chimneys were quite common in 1970/80's built houses. They were built into the wall so you very rarely had a chimney breast. What you see in the loft is the transfer block going to the flue pipe from your lounge/living room, the pipe is probably Nurastone and not asbestos (though you may want to test it if doing anything to it, personally I would leave it alone). This pipe goes up to a ridge terminal. They are only suitable for certain low power gas fires, not inset or decorative gas fires, and certainly not solid fuel/log burning fires.