Robbie Anderson
Homeowners say they feel “betrayed” and “cheated” after struggling to sell their properties because of spray foam insulation installed under a government program.
More than 160 people got in touch after BBC research revealed a quarter of the UK's biggest lenders were refusing homes where spray foam was in the attic.
Robbie Anderson told the BBC he felt “exploited” after the sale of his house failed, despite insulation being installed under the previous government's Green Homes Grant scheme.
Liberal Democrat MP Tom Gordon wrote to the Energy Secretary demanding “decisive action”, while the Department of Housing said it was consulting lenders.
Estimates suggest that up to 250,000 homes in the UK are fitted with this type of insulation, with most installed as part of the previous government's official scheme.
The Green Homes Grant scheme, implemented in England, provided fully subsidized facilities for people on certain benefits.
But some of the UK's biggest mortgage companies are reluctant to deal with homes fitted with spray foam insulation due to concerns about poor connections leaving moisture trapped and roof beams at risk of decompose.
Industry experts said BBC spray foam is an effective insulator if installed correctly, and that urgent action is needed to stop panicked homeowners from unnecessarily turning to “cowboy” moving companies.
Robbie, 38, had spray foam installed in 2021, with the entire cost of £5,733 covered by the Green Homes Grant scheme as he was then eligible for certain benefits.
He and his wife hoped to move to a larger house in Nottingham, closer to potential secondary schools for their young daughter.
When they put their house on the market this summer, they quickly received an offer at asking price. But Robbie said he was “shocked” when the buyers’ lenders rejected the property and they walked away from the purchase.
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Spray foam insulation is applied with a spray gun and expands to fill a given area, forming an insulating layer.
The work was carried out by a Trustmark approved installer and Robbie received documentation including a British Board of Agreement (BBA) product certificate.
But the potential buyers' mortgage provider said it required a installation guarantee backed by insurance of a minimum of 10 years, although Robbie has one with the industry standard of two years.
He told the BBC he felt “a bit betrayed” and didn't know what to do next, with 12 months remaining on his current mortgage.
The couple plan to remove the insulation themselves, costing £4,000.
“I don’t think it’s fair that we have to pay for this to be removed,” Robbie said.
“(The government) has to take responsibility for this… given that they paid for something they thought was a good thing.”
What is spray foam insulation?
Spray foam insulation has been used for decades to prevent heat from escaping roofs, attics and attics and comes in two forms.
Closed cell spray foam is rigid once set. It is a better thermal insulator and was previously sold to stabilize failing roofs. But if it has been used inappropriately or installed incorrectly, it can put pressure on the wood, restricting air circulation and putting them at risk of rot.
Open-cell spray foam remains soft once set and is only used for insulation. It is more breathable but is often installed where a heavy-duty underlay such as bitumen felt is already present, preventing steam from escaping.
Geoff Hunt, an independent chartered building surveyor, said open-cell spray foam had grown in popularity in recent years, supported by government initiatives.
But he added that mortgage lenders have difficulty pricing spray foam, leading to “cautions and refusals for higher-risk applications,” such as when it has been applied directly to tiles.
Properly installed open-cell foam on a healthy roof has not been conclusively linked to roof degradation, he added, emphasizing that it is important that homeowners with this type of insulation not don't panic.
'Asshole'
Philippa from Wiltshire also had open cell spray foam installed in her loft in 2021, with the cost of £8,662 covered by the Green Homes Grant scheme.
She recently accepted an offer from first-time buyers on her property, but said Nationwide would not lend to them without additional documentation on insulation.
She said this “scared” her buyers and they withdrew before she had a chance to provide the additional documents.
Nationwide told the BBC it was “unable to make a final lending decision” without documentary evidence that the spray foam was properly installed or without reporting on the structural integrity of the roof.
Philippa said she couldn't afford to remove the insulation and reduced her asking price to cover the cost for any future buyers.
“I feel like I've been misled by the government,” she said, adding that she doesn't think spray foam insulation should be available for sale until there would not be a better understanding of the product.
“Non-mortgageable”
Although the Green Homes Grant program ended in 2021, spray foam insulation is still available under the Great British Insulation Scheme as the government seeks to improve the energy efficiency of homes and moves towards its target ” net zero” for 2030.
Rico Wojtulewicz, policy manager at the National Federation of Builders, said he has been trying for years to raise awareness about potential problems with spray foam insulation.
“The government may view spray foam as an easy solution, but an unmortgaged, unsanitary or damaged home is a worse outcome than requiring further consideration of renovations or more expensive heating,” he said.
He calls on the government to work with installation companies.
It comes as Liberal Democrat MP Tom Gordon wrote to Energy Secretary Ed Miliband, calling for “decisive action” and “support” for homeowners facing financial repercussions.
Mr Gordon said he was moved to act after he and many MPs in his party were contacted by constituents facing unexpected costs, the letter said.
“This government must do more to support them,” he adds.
The Department of Housing told the BBC it had “consulted with lenders” over spray foam insulation and would “rely on the advice of valuers and surveyors on this issue”.
He said any measures taken under government schemes must be carried out by a Trustmark registered installer and meet the highest standards, and any issues must be resolved promptly.
Advice for owners
For homes where spray foam insulation is already present, the Homeowners' Alliance recommends:
Check that you have all relevant documentation, including a product certificate, installer warranty, before and after photos, survey report and product warranty. Contact the installer or manufacturer to see if you can get a free “health check”. Consider an independent evaluation by a qualified spray foam expert
Currently, he does not recommend installing spray foam until issues with dishonest lenders and dealers are resolved.
