The use of spray foam insulation in homes across the UK is becoming a significant issue amid increased lender hesitance to finance properties featuring this type of insulation. Recent findings by the BBC reveal that approximately 25% of the country’s leading mortgage providers are choosing to reject applications for houses that contain spray foam in their roofing systems. This situation is troubling for homeowners who are struggling to sell their properties or remortgage, with an estimated 250,000 homes having this insulation material installed, many under the previous government’s Green Homes Grant scheme.
Wendy Rowe’s experience illustrates the challenges homeowners face. She was unaware of any issues regarding spray foam insulation until she attempted to sell her late father’s house, which had this insulation installed. The family’s attempts to sell were thwarted, and they ultimately invested thousands to remove the foam insulation after becoming aware of its pitfalls. Lenders have expressed concerns regarding water retention and related degradation of roofing timbers due to poorly fitted insulation, prompting strict lending policies.
Experts classify spray foam insulation into two categories: closed cell and open cell. Closed cell foam becomes rigid upon setting, providing excellent thermal insulation but potentially harming roof structures if improperly installed. Open cell foam remains soft, facilitating breathability but can become problematic when it hinders vapour release. In light of emerging issues, the Health and Safety Executive has warned against applying open cell foam directly to roof tiles, raising further concerns among lenders.
As lenders navigate a complex landscape, several major institutions, including TSB Bank, Skipton Building Society, Co-operative Bank, Aviva, and Principality, have made clear their reluctance to fund homes with spray foam in the roofing areas. Others, like Yorkshire Building Society and Metro Bank, specify that they usually refrain from supporting homes with substantial spray foam. Some lenders still evaluate applications on an individual basis but often require detailed assessments or documentation confirming proper installation. In response to these complications, the Property Care Association published a protocol meant to assist surveyors and lenders in understanding the potential risks associated with properties containing spray foam insulation.
Concerns extend beyond lending issues; homeowners fear being exploited by rogue operators offering removal services for inflated prices. Simon Storer, the chief executive of the Insulation Manufacturers Association, articulated that fear surrounding “spray foam” stems from misinformation and a lack of understanding. He reminded the public of the importance of proper installation in ensuring insulation’s benefits.
The Homeowners Alliance (HOA) currently advises against the installation of spray foam until lenders resolve their hesitation and regulatory bodies clamp down on dubious traders. Meanwhile, they encourage homeowners already using spray foam to gather all relevant documentation—like product certifications, warranties, and any inspection reports—that could cement their case during a remortgage or sale attempt.
In light of these developments, a government spokesperson stated that they have consulted with lenders, who base their decisions on the perspectives provided by valuers and surveyors. Furthermore, the government underscores that all measures applied under schemes such as the Green Homes Grant should only be installed by registered professionals to ensure the highest standards and address any issues promptly.
Homeowners facing hurdles due to spray foam insulation are thus advised to conduct health checks, pursue independent assessments, and ensure they have clear documentation, as the current landscape remains cumbersome for many. With lenders establishing stringent policies based on emerging insights, navigating sales and remortgages has become a challenging endeavor for numerous property owners entrenched in the spray foam insulation dilemma.
