(qlmbusinessnews.com Tues. 19th Nov, 2024) London, UK —
The Costly Truth About Spray Foam Insulation and Its Impact on Mortgages
UK Homeowners with spray foam insulation are facing mounting difficulties when trying to sell or remortgage their properties, as many major lenders are rejecting homes with this type of insulation installed, new research reveals.
An investigation found that a quarter of the UK’s top mortgage providers refuse to lend against properties where spray foam insulation has been fitted in the roof. It is estimated that up to 250,000 UK homes have this insulation, much of it installed under the now-defunct Green Homes Grant scheme.
For homeowners like Wendy Rowe, the issue has been costly and stressful. Her family spent thousands removing spray foam insulation from her late father’s home in Leicester after struggling to sell it. The foam had been installed under the government scheme, which covered the £4,331 cost in full. “We had no idea about the problems until we put the house on the market,” she said.
Why Lenders Are Cautious
Some mortgage firms are hesitant about properties with spray foam insulation due to concerns over poor installation practices. Improperly applied spray foam can trap moisture, leading to timber decay and structural issues. Valuers also face difficulties inspecting roof timbers once spray foam has been installed.
The Insulation Manufacturers Association (IMA) has defended the material, stating that spray foam can be beneficial when installed correctly. However, they warn that scare stories could push homeowners towards unregulated companies offering unnecessary or overpriced removal services.
A Divisive Solution
Spray foam insulation, used for decades to improve energy efficiency, comes in two forms:
– Closed cell foam, which is rigid and thermally efficient but can stress roof timbers if improperly installed.
– Open cell foam, which is softer and breathable, but risks trapping moisture if paired with non-permeable underlays.
The controversy has left homeowners in difficult positions. Gary Wright discovered open cell spray foam in his loft when attempting to remortgage. Despite removing most of it himself, he was required to commission a costly roof report. Unable to secure a better rate, he was forced to renew his mortgage at less favourable terms.
The Industry’s Response
A protocol published in 2023 by the Property Care Association aims to help surveyors and lenders assess risks associated with spray foam insulation. However, homeowners continue to feel “left in limbo.” The Homeowners Alliance has advised against installing spray foam until regulatory and lender concerns are fully addressed.
IMA chief executive Simon Storer criticised outdated industry guidance for creating fear among lenders. “Insulating is essential for energy efficiency,” he said, “but it must be done correctly.”
Until these issues are resolved, thousands of UK homeowners face uncertainty, with their property value and mortgage options hanging in the balance.
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