Homeowners Encounter Property Sale Obstacles Due to Government-Supported Spray Foam Insulation

Property owners have expressed feeling “betrayed” and “conned” as they encounter difficulties selling their homes, attributing these struggles to spray foam insulation installed through a government initiative. Over 160 individuals contacted the BBC following its investigation, which revealed that 25% of the United Kingdom’s largest mortgage providers decline properties with spray foam present in the roof area. Robbie Anderson informed the BBC that he felt “taken advantage of” after his home sale collapsed, even though the insulation had been installed as part of the former government’s Green Homes Grant scheme. Liberal Democrat Member of Parliament Tom Gordon has sent a letter to the energy secretary, urging “decisive action,” concurrently, the Department for Energy Security has stated its engagement in consultations with lenders. Approximately 250,000 residences across the UK are estimated to feature this insulation type, with a portion of these installations occurring under the previous government’s official program. The Green Homes Grant scheme, operational in England, provided full subsidies for installations to individuals receiving specific benefits. However, several of the UK’s major mortgage companies are hesitant to finance properties with spray foam insulation, citing worries that improper installation could lead to moisture entrapment and potential decay of roof timbers. Industry specialists have communicated to the BBC that spray foam functions as an efficient insulator when installed correctly, and immediate measures are necessary to prevent distressed homeowners from unnecessarily engaging “cowboy” removal firms. Robbie, aged 38, had spray foam installed in 2021, with the full cost of £5,733 covered by the Green Homes Grant scheme due to his eligibility for specific benefits at that period. He and his spouse had intended to relocate to a larger residence in Nottingham, seeking proximity to prospective secondary schools for their young daughter. Upon listing their house for sale this summer, they promptly received an offer matching the asking price. Nevertheless, Robbie stated he was “shocked” when the prospective buyers’ lenders declined the property, leading to the buyers withdrawing from the acquisition. The installation was performed by a Trustmark-approved installer, and Robbie received documentation, including a British Board of Agrément (BBA) product certificate. However, the potential buyers’ mortgage provider requested an insurance-backed installation warranty of at least 10 years, even though Robbie possessed one with the industry-standard duration of two years. He informed the BBC that he felt “a little bit betrayed” and uncertain about his next steps, with 12 months left on their existing mortgage. The couple intends to remove the insulation themselves, having received a quotation of £4,000 for the work. “I don’t feel it’s fair that we should have to pay to get this removed,” Robbie stated. He added, “[The government] have to take accountability for it… given that they forked out for something they thought was a good thing.” Spray foam insulation, employed for decades to prevent heat loss from roofs, lofts, and attics, is available in two distinct forms. Closed cell spray foam becomes rigid upon setting. It offers superior thermal insulation and was formerly marketed for stabilizing compromised roofs. Nevertheless, if applied improperly or installed inadequately, it could exert pressure on timbers, impede air circulation, and expose them to the risk of decay. Open cell spray foam retains its softness after setting and serves solely as insulation. While more breathable, it is frequently installed in locations where a highly resistant underlay, such as bitumen felt, already exists, thereby preventing vapor egress. Geoff Hunt, an independent chartered building surveyor, noted that open cell spray foam has seen increased popularity in recent years, supported by governmental programs. However, he explained that mortgage lenders face challenges in evaluating spray foam, resulting in “caution and refusals on higher-risk applications,” such as instances where it has been applied directly onto roof tiles. He further stated that properly installed open cell foam on a structurally sound roof has not been definitively associated with roof decay, stressing the importance for homeowners with this insulation type to avoid panic. Philippa, residing in Wiltshire, also had open cell spray foam installed in her loft in 2021, with the £8,662 expense covered by the Green Homes Grant scheme. She recently accepted an offer for her property from first-time buyers, but stated that Nationwide would not provide a loan to them without additional documentation regarding the insulation. She mentioned that this “spooked” her buyers, causing them to withdraw before she could provide the supplementary papers. Nationwide informed the BBC that it was “unable to make a final lending decision” without either documentary proof of correct spray foam installation or a report assessing the roof’s structural integrity. Philippa indicated that she cannot afford the removal of the insulation and has consequently lowered her asking price to offset the cost for any prospective buyer. “I feel like I’ve been conned by the government,” she remarked, further stating her belief that spray foam insulation should not be commercially available until a more comprehensive understanding of the product is established. Although the Green Homes Grant scheme concluded in 2021, spray foam insulation remains accessible through the Great British Insulation Scheme, as the government aims to enhance residential energy efficiency and advance towards its 2030 “net zero” objective. Rico Wojtulewicz, who serves as head of policy at the National Federation of Builders, stated that he has endeavored for years to heighten awareness regarding potential problems associated with spray foam insulation. He commented, “Government may view spray foam as an easy solution but an un-mortgageable, unhealthy or damaged home is a worse outcome than requiring greater retrofitting thought or more expensive heating.” He advocates for collaboration between the government and installation companies. This development coincides with Liberal Democrat MP Tom Gordon’s letter to Energy Secretary Ed Miliband, requesting “decisive action” and “support” for property owners encountering financial consequences. Mr. Gordon indicated that he was prompted to take action after he and numerous MPs from his party received communications from constituents dealing with unforeseen expenses, according to the letter. The letter further stated, “This government must do more to support them.” The Department for Energy Security informed the BBC that it had “consulted lenders” regarding spray foam insulation and would “rely on the views of valuers and surveyors on this issue.” It specified that any installations carried out under government schemes must be performed by a Trustmark-registered installer, adhere to the highest standards, and have any problems rectified without delay. For residences already equipped with spray foam insulation, the Homeowners’ Alliance advises: Presently, it does not endorse the installation of spray foam until concerns involving lenders and unscrupulous traders are addressed.