Homeowners across the UK are voicing their frustration and feelings of betrayal after struggling to sell their homes due to spray foam insulation, installed under a government initiative. More than 160 individuals have reached out to BBC News following findings that a quarter of the UK’s largest mortgage lenders are rejecting properties with spray foam insulation in the roof space.
Robbie Anderson, a homeowner from Nottingham, shared his experience of having his sale fall through despite installing spray foam under the Green Homes Grant scheme. The government-backed program, which ran between 2020 and 2021, covered the full cost of installations for those eligible for certain benefits. Anderson said he felt “taken advantage of” after prospective buyers’ lenders refused to approve his home, citing concerns over the insulation’s warranty.
The Green Homes Grant scheme aimed to boost energy efficiency by funding installations like spray foam. However, some of the UK’s major mortgage lenders are now reluctant to finance homes with spray foam insulation, citing concerns over potential damage to roof timbers and trapped moisture that could lead to decay. Experts argue that while spray foam can be effective if properly installed, faulty applications can cause serious issues for homeowners.
Estimates suggest up to 250,000 homes may have this type of insulation, primarily installed under the Green Homes Grant. Industry experts have warned that homeowners might fall victim to rogue removal companies as they seek to reverse the damage.
Robbie Anderson’s case is one of many. After spending £5,733 to have spray foam insulation fitted in his loft, he was left shocked when his sale fell through. His mortgage lender required an insurance-backed warranty for the installation, which he did not have. Anderson, who was initially eligible for the Green Homes Grant, now faces the prospect of paying £4,000 to remove the insulation himself.
Philippa, a homeowner in Wiltshire, faced a similar issue when her sale collapsed after the mortgage provider, Nationwide, requested additional documentation regarding her insulation. She too had received the insulation under the Green Homes Grant. Philippa expressed her frustration, stating she felt “conned” by the government. She has since lowered her asking price to cover potential removal costs for future buyers.
While the Green Homes Grant ended in 2021, spray foam insulation remains available under the Great British Insulation Scheme, part of the government’s broader push to improve energy efficiency. However, experts like Rico Wojtulewicz, head of policy at the National Federation of Builders, caution that government schemes should be better aligned with long-term solutions to avoid leaving homeowners with un-mortgageable properties.
Liberal Democrat MP Tom Gordon has urged the government to take action, calling for more support for affected homeowners. The Department for Housing has said it is in talks with lenders and will rely on the views of valuers and surveyors moving forward.
For homeowners facing issues with spray foam insulation, the Homeowners’ Alliance recommends ensuring they have all necessary documentation, including product certificates and warranties, and advises contacting the installer for a “health check” of the insulation. They also warn against installing spray foam insulation until the situation with lenders and rogue traders is resolved.