“Spray foam insulation ruined our house sale”

Homeowners say they feel “betrayed” and “betrayed” after struggling to sell their properties because they installed foam insulation as part of a government scheme.

More than 160 people responded afterwards BBC research found that a quarter of Britain's largest lenders reject houses that have spray foam in the attic space.

Robbie Anderson told the BBC he felt “taken advantage of” after the sale of his home fell through, despite insulation being fitted under the previous government’s Green Homes Grant scheme.

Liberal Democrat MP Tom Gordon called for “decisive action” in a letter to the Energy Secretary, while the Housing Department said it was consulting with lenders.

Estimates suggest that up to 250,000 homes in the UK have this type of insulation, with much of this installed as part of the previous government's official scheme.

Under the Green Homes Grant program implemented in England, facilities were fully subsidized for those on certain benefits.

But some of the UK's biggest mortgage lenders are reluctant to deal with homes with spray foam insulation, fearing that poor fittings will trap moisture and risk the roof beams deteriorating.

This is what industry experts told the BBC Spray foam is an effective insulator when installed correctly, and urgent action is needed to prevent panicked homeowners from unnecessarily turning to “cowboy” removal 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 eligible for certain benefits at the time.

He and his wife were hoping to move to a larger house in Nottingham, closer to possible secondary schools for their young daughter.

When they put their home on the market this summer, they quickly received an offer with an asking price. But Robbie said he was “shocked” when the buyer’s lenders rejected the property and they backed out of the purchase.

The work was carried out by a Trustmark approved installer and Robbie received documentation including a British Board of Agreement (BBA) product certificate.

However, the prospective buyer's mortgage lender stated that he needed an insurance-backed installation warranty of at least 10 years, although Robbie has one with the industry standard of two years.

He told the BBC he felt “a little cheated” and was confused about what to do next, with 12 months left on the current mortgage.

The couple plan to remove the insulation themselves and are quoting £4,000 to do so.

“I don’t think it’s fair that we have to pay to have this removed,” Robbie said.

“[The government] must take responsibility for it…assuming they spent themselves on what they thought was a good cause.”

To prevent heat leakage from roofs, attics and lofts, spray foam insulation has been used for decades and is available in two forms.

Closed cell spray foam is rigid after curing. It is a better heat insulator and was previously sold to stabilize damaged roofs. However, if used improperly or installed poorly, it can stress the woods, restrict air circulation and put the wood at risk of rotting.

Open cell spray foam remains soft after hardening and is only used for insulation. It is more breathable, but is often installed where there is already a highly durable base such as bituminous felt to prevent steam from escaping.

Geoff Hunt, an independent chartered building surveyor, said open cell spray foam had gained popularity in recent years thanks to government initiatives.

But he said mortgage lenders had difficulty assessing spray foam, leading to “caution and rejection in higher risk applications,” such as those applied directly to roof tiles.

Properly installed open-cell foam on a sturdy roof is not clearly linked to roof deterioration, he added, emphasizing that it is important for homeowners with this type of insulation not to panic.

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 for her property, but said Nationwide would not give them a loan without providing further insulation documentation.

She said this “scared away” her buyers and they backed out 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 installed correctly or a report on the structural integrity of the roof.

Philippa said she couldn't afford to remove the insulation and had lowered her asking price to cover the cost for future buyers.

“I feel like I've been cheated by the government,” she said, adding that she doesn't believe spray foam insulation should be available for sale until there is a better understanding of the product.

While the Green Homes Grant program ended in 2021, spray foam insulation remains available under the Great British Insulation Scheme as the government looks to improve the energy efficiency of homes and aim for its 2030 “net zero” target.

Rico Wojtulewicz, director of policy at the National Federation of Builders, said he has been trying for years to raise awareness of potential problems with spray foam insulation.

“The government may see spray foam as a simple solution, but an unstable, unhealthy or damaged home is a worse outcome than requiring major upgrades or more expensive heating,” he said.

He wants the government to work with installation companies.

This came as Liberal Democrat MP Tom Gordon wrote to Energy Secretary Ed Miliband calling for “decisive action” and “support” for homeowners facing financial impacts.

Mr. Gordon said he was prompted 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,” it continued.

The Housing Department told the BBC it had “consulted with lenders” about spray foam insulation and would “rely on the views of surveyors and valuers on this issue”.

It states that any work carried out under government programs must be carried out by a Trustmark registered installer and to the highest standards, with any problems being addressed promptly.

For homes that already have spray foam insulation, recommends the Homeowners' Alliance:

• Check that you have all relevant documentation, including a product certificate, installer warranty, before and after photos, inspection report and product warranty
• Contact the installer or manufacturer to see if you can receive a free “health check.”
• Consider an independent assessment by a qualified spray foam appraiser

At this time, spray foam installation is not recommended until issues with lenders and fraudulent dealers are resolved.