The HomeOwners Alliance (HOA) and Property Care Association (PCA) have partnered to ask the government to implement a standard approach to spray foam insulation.
This comes after research from the HOA and the BBC found that five of the UK’s 20 largest lenders said they would not lend on a property with spray foam insulation. Other lenders said they would consider this on a case-by-case basis.
The HOA said this left homeowners unable to sell or release equity from their homes, while others could be targeted by rogue spray foam removal firms and legal firms wanting to pursue mis-selling claims.
It has been estimated that around 250,000 homes in the UK have spray foam insulation, and the HOA has issued a warning to homeowners to pause installations due to the problems and costs involved.
Government assistance needed
Paula Higgins, chief executive of the HOA, said: “The Energy Company Obligation (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.
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“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 government previously said it would “not intervene” with homes that were unmortgageable due to spray foam insulation installed through its Green Homes Grant scheme.
In a joint letter to Miatta Fahnbulleh, minister for Energy Security and Net Zero, and Ali Rushanara MP, minister for Ministry of Housing, Communities and Local Government, the two organisations have asked for a roundtable discussion on the issue of spray foam insulation.
Reassuring lenders
The PCA has developed a protocol for inspection and published a register of surveyors to reassure residents and lenders that assessments are being done by trained and audited professionals.
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.”
