The HomeOwners Alliance and national trade body Property Care Association (PCA) have called on the Government to take action on spray foam insulation, which has left many homeowners unable to sell their properties or access equity release.
An estimated 250,000 UK homes have spray foam insulation, but homeowners are increasingly facing difficulties due to lenders’ reluctance to approve mortgages on properties where it has been installed. Research by HomeOwners Alliance and the BBC found that only 25% of mortgage lenders and no equity release providers will lend on homes with spray foam installed as a retrofit measure.
Paula Higgins, chief executive at HomeOwners Alliance, said: “The ECO4 grant and Great British Insulation Scheme (GBIS) both fund the installation of spray foam to eligible households. It can’t be that homeowners convinced to install spray foam at a significant personal financial cost, and in many cases with help of government grants, are now faced with bills for hundreds if not thousands of pounds to remove the product – far exceeding the original installation costs – in order to be accepted by lenders or release equity from their homes.
“We also call on the Government’s assistance to stamp out the rogue spray foam removal companies who are scaring homeowners to remove the insulation and are causing even further damage to their homes.”
The two organisations have written to Miatta Fahnbulleh, Minister for Energy Security and Net Zero, and Rushanara Ali, Minister for Housing, Communities & Local Government, calling for a roundtable discussion on spray foam insulation.
The PCA has developed an inspection protocol and a register of trained surveyors to assess homes with spray foam, providing assurances to homeowners and lenders. However, despite these measures, many lenders remain unwilling to approve mortgages where spray foam is present.
Sarah Garry, chief executive of the PCA, said: “In 2023 the PCA worked with lenders and building experts to create our Sprayed Foam Inspection Protocol and early last year created a register so homeowners and lenders could be assured that the people assessing the spray foam had the appropriate training.
“We understand lenders are concerned that different types of sprayed polyurethane foam can lead to trapped moisture and that the inability of moisture to escape can cause mould, damp and timber decay. These are the same problems as with solid wall insulation. But even when installed by legitimate firms and with the correct paperwork, lenders are still reluctant to lend where spray foam is present.
“We ask the Government to bring together a roundtable of specialist property experts, lenders and equity release companies, to agree whether spray foam should continue to be included within Government grants and to agree a process to support homeowners who have spray foam installed.”
