Spray foam roof insulation warning to homeowners

Spray foam roof insulation is a popular way of increasing the energy efficiency of our homes. So much so, the government supports and helps fund spray foam insulation as an energy saving measure. But it now appears that homes with spray foam insulation could face problems getting a mortgage. Here's what you need to know and what you should do if your home has spray foam roof insulation.

Paula Higgins CEO & Founder

What is spray foam roof insulation?

As we warm our homes, most heat is lost through our walls, windows and roofs. So it makes sense to stop heat escaping, to improve energy efficiency and spend less on heating bills. This is where spray foam roof insulation comes in: it is a chemical product containing two materials which when combined expand up to 30-60 times its liquid volume, filling every nook and cranny. It’s a great way of providing extra insulation and warmth. 

So much so that spray foam insulation was also included in the government’s Green Homes Grant scheme (which closed to new applicants in March 2021) giving homeowners in England help to pay for certain energy-efficient home improvements. And spray foam roof insulation is today promoted by the government as one of the energy efficient home improvements that are VAT-free, as a way of encouraging consumers to invest in energy efficient measures.

And so while spray foam roof insulation has been around for 30 years, it has become more popular in the last decade thanks to these schemes and the drive for more energy efficient homes. In fact, according to the Property Care Association there may be as many as 250,000 homes with spray foam roof insulation in the loft. 

Types of spray foam roof insulation

Firstly, there are two types of spray foam roof insulation and it’s important to know the difference:

• Closed cell spray foam roof insulation: This sets into a rigid solid has been used in the past to glue old, poor condition roofs together to make them last longer. If closed cell spray foam has been used rather than open cell spray foam insulation, the main problems are that it can put stress on supporting roof timbers, can restrict air circulation in the roof and cause condensation, which in turn causes roof timbers to rot.
• Open cell spray foam roof insulation: This is soft and is only used for insulation. But it needs to be carefully applied by a manufacturer-approved installer to be under warranty. Bear in mind, some work to a roof might be expected before it is applied.

Potential problems with spray foam insulation

There are potentially very costly problems that can occur with spray foam roof insulation, including:

• High installation cost
• The wrong type is installed
• Requires professional installation
• Can trap moisture, leading to damp, condensation and roof timbers rotting
• Difficult and expensive to remove once applied
• Problems getting a mortgage
• Unlikely to access equity release
• Difficulty selling

How to get spray foam roof insulation installed properly

The spray foam roof insulation industry is unregulated and if isn’t installed correctly or sprayed in a roof space that is unsuitable, such as one with a condensation problem, it can lead to rot. And it shouldn’t be sprayed over cables, which could lead to overheating. When you have spray foam roof insulation installed a surveyor should inspect your property first and undertake a condensation risk assessment, this is known as hygrothermal evaluation, before any work is carried out. This will add to the overall cost of having spray foam added. And cowboy firms often won’t bother to mention this step. 

If your spray foam roof insulation has been properly installed by a professional you’ll have the paperwork to prove it. You should have:

• A pre-survey suitability report which will set out the condition your of roof and timbers before the foam was sprayed;
• Condensation risk assessment;
• Independent test certificate such as BBA or Kiwa certification detailing the type of foam and how it should be sprayed;
• Installation company details and its credentials;
• Installation guarantee.

Spray foam roof insulation and mortgages: what you need to know

Lenders are alert to the issues with spray foam roof insulation. As a result, spray foam roof insulation is one of many factors that can throw up a red flag to a mortgage lender. For a lender, your insulation matters because it affects important factors such as the home’s saleable value and energy efficiency rating.

As valuers appointed by mortgage lenders are finding spray foam roof insulation in lofts they are having to report it. And even if it is well applied, because of its very nature it is very hard to assess the condition of the loft and roof underneath the insulating foam. This means most surveyors recommend more investigation is needed. But instead of investigating further, many mortgage lenders simply put these types of properties into a “too difficult” box and refuse to lend unless the spray foam roof insulation is removed. In fact most equity release companies have a total ban on spray foam roof insulation. 

The financial implications for homeowners who have spray foam roof insulation are significant:

• Homeowners may find it difficult to sell their property to someone who needs a mortgage, unless they pay to get the insulation removed.
• Homeowners are unlikely to be able to access equity release. 
• Homeowners may struggle to remortgage

Which lenders will lend to me if my home has spray foam roof insulation?

While you may struggle to get a mortgage that doesn’t mean it’s not possible – but it varies by lender. For example:

• Nationwide says it will lend providing you have the correct paperwork, your foam has been correctly sprayed and your roof was in good condition.
• Santander may require a structural engineer’s report to be carried out as well. These can cost up to £2,000. 
• Barclays and Halifax say they’re guided by the valuer’s decision on individual cases.
• HSBC won’t lend on properties with spray foam insulation.

It’s also worth noting that getting a surveyor to check over the paperwork and thoroughly inspect the roof and structure for signs of damage could cost around £700.

Where do I stand with equity release?

Currently there are no equity release lenders that will lend on a property if you have had spray foam roof insulation installed after the property was built. Equity release lenders are more risk adverse because they may end up having full ownership of the property years down the line. However, Responsible Lending, will issue equity release on properties providing the foam was installed during construction.

I’ve got spray foam roof insulation – what should I do?

Many lending institutions, surveyors and property professionals, are rightly concerned about the risks of defects that can occur as a result of poorly installed or inappropriate sprayed foam. The Residential Property Surveyors Association (RPSA) and Property Care Association, published an inspection protocol in March 2023 to help surveyors when they are inspecting spray foam as part of a mortgage valuation or building survey. These inspection guidelines should help surveyors and lenders accurately assess the risk that could be caused to a roof due to poorly installed or inappropriate use of spray foam.

In the meantime, if you have spray foam in your roof space, you have the correct paperwork and you’re not planning to sell or take out equity release in the near future, you don’t need to take any action.

If you are looking to remortgage or sell, speak to a fee-free mortgage broker and explain you have spray foam insulation. They should be able to tell you which lenders are comfortable with spray foam insulation and what other lenders require as next steps.

Can I remove spray foam roof insulation?

To remove spray foam insulation you are likely to be faced with spending thousands of pounds, more than the cost of the initial installation, and you may need to replace the entire roof.  Removal of open cell foam is easier as it comes away from timbers, underlay and ties more easily. Closed cell foam is more dense and rigid, making it more difficult to remove without causing damage to your roof covering. 

Homeowners may also need to deal with the consequences in the event that the spray foam was poorly installed – such as structural damage and rotting. 

Whether this is right for you will depend on your circumstances, for example if you have the right paperwork you may not need to remove it.

But if you do want to remove it, as with all building work, it’s important to find a reputable company to remove the spray foam. It’s recommended you use a professional as it’s a time-consuming and labour intensive project to do it correctly.  You may want to consider replacing it with another type of insulation to help keep your home warm and to save on energy costs. See our guide on how to make your home more energy efficient.

How much does it cost to remove spray foam roof insulation

The amount it costs to remove spray foam insulation will vary on factors like location, access and how much needs to be removed. But experts say it’s likely to cost more than installation. That’s because it gets into all the crevices and the gaps behind timbers making it difficult to get to and get rid of it. Also bear in mind that damage to your home may already have been done.

One of our readers who is buying a property with open cell spray foam has received quotes to remove the foam for £17,000 when the original installation cost £12,000. Although she is a cash buyer, she hopes to take advantage of equity release in the future.

According to Checkatrade, the cost of removing spray foam insulation can cost around £40 per square metre but you also need to factor in the cost of the skips as well as the safe disposal of the insulation.

Unacceptable situation for homeowners 

The situation with spray foam is very concerning for homeowners – but also very confusing. Has it been fitted correctly? Has the right type been used? Do you have the right paperwork? Fall foul of any of these and you could be faced with extremely costly work to remove it or find yourself in an unmortgageable or saleable house. 

Even if you do everything properly some lenders will still not lend you a mortgage while others may require you to commission expensive reports to assure them everything is in order. This is unacceptable – especially as we’re talking about a government-backed measure. The challenge now is for surveyors to get to grips with this new protocol, and for quality assurance schemes to be introduced in this largely unregulated area. In any case, we want to see a requirement for insulation companies to run a warning of the consequences of installation on their marketing material. 

Commenting on the situation, HomeOwners Alliance Chief Executive Paula Higgins says, ‘For years spray foam roof insulation has been on a government list of approved measures. And homeowners have been able to access government grants to reduce the cost of installing it in their homes.  So we are shocked and dismayed that homeowners doing the right thing are now being financially penalised; they may find it’s difficult to sell or remortgage. While some are having to pay over the odds to remove the spray foam. 

Whilst it’s good to see industry working together to launch an inspection protocol, this is in no way a done deal. It could take ages to filter down to the homeowners that are impacted and does nothing to address the agressive sales tactics by installers who hide behind the approved government badge.

Alan Milstein, Chairman of Residential Property Surveyors Association says, ‘Now we have the inspection protocol, our priority is to train surveyors so they can carry out these inspections. But ultimately the spray foam industry needs to be fully regulated to address these problems.’

We agree. The pushy sales tactics employed by the installers whiffs of a money making scheme by the industry, especially as spray foam is significantly more expensive than the more traditional forms of insulation. That’s why we’re calling on the Government to work with industry and lenders to urgently review spray foam insulation. 

In the meantime, we are calling on the industry to ensure health warnings about the risks to your property and getting a mortgage are added to foam installation company guidelines, websites and marketing material.

And until this is done, we recommend homeowners do not install spray foam insulation.

It’s hard enough for homeowners during a cost of living crisis, soaring energy bills and increasing taxes. But to find that eco measures they have invested in to make their homes warmer, cut their bills and reduce their carbon footprint, may be damaging the structural integrity of their homes and end in them having to be undone at their expense is a disgrace.

The Residential Property Surveyors Association suggests that for most homeowners putting 300mm of fibre insulation on their floor of their loft will provide every bit as much insulation as spray foam, but at a fraction of the cost and with minimal risk of causing damage.

Spray foam roof insulation: Industry advice before you install 

For those contemplating installing spray foam insulation, the Royal Institution of Chartered Surveyors (RICS) recommends the use of an independent expert, commercially separated from the installer/manufacturer, who can carry out pre-installation assessment tests.  Their expert building surveyors can advise if spray foam is right for your property. 

Our concern about this response is two-fold. First of all, it is yet another expense for homeowners. Our second is that homeowners need to be made aware of this in advance by installers, which is currently not the case. 

In 2022, an investigation by the Property Care Association found that the majority of spray foam installations have been carried out with insufficient preparation to reduce the risk of structural roof timbers being severely weakened by rot and other defects.

The investigation also observed that installers will often prey on vulnerable homeowners by knocking on doors.  Trading standards agree. “We’ve seen a 28 per cent increase in doorstep crime in the past year, with bogus callers, and the biggest thing we’re finding is home improvements aimed at energy efficiency: foam insulation, ‘green deals’ and roof sealing,” says Katherine Hart, at the Chartered Trading Standards Institute. Even more confusing for homeowners is that spray-foam insulation is offered by tradespeople who are accredited by the government-endorsed Trustmark scheme and the government’s skills for life programme is fully funding spray insulation courses. 

Installing spray foam roof insulation – what should I do?

At the moment, we would suggest you avoid installing spray foam roof insulation. Besides the current controversy, it’s a significantly more expensive measure than other forms of insulation. According to Checkatrade, traditonal blanket insulation costs £10 a square metre, compared to £35 for spray foam insulation.

If however you are keen and looking for an installer, do not engage with cold-callers or companies using heavy handed sales tactics.

You could start by finding an installer who is a member of the  National Insulation Installers  but be aware that they do not operate an accredited scheme and take no responsibility for the work of their members. So make sure you do your own checks, ask to speak to previous clients and look at their reviews.  You will want to inform your lender to see if they have any objections. A good installer will take lots of measurements, look at the condition of the roof and the roof tiles, timbers and record moisture levels. They will explain clearly how the material is used and there should also be an insurance backed guarantee as well as an Agreement Certificate to show that the product and its installation has been certified by the third-party BBA or KIWA. 

Buying a property with spray foam roof insulation – what should I do?

If you’re buying a property, you should ask your surveyor to check for it in the loft (although they should spot it) and if present, flag it with your conveyancer as part of the buying process.

You may need to flag with your mortgage provider. Get fee-free mortgage advice from our partners at L&C. Start online or give them a call today about your remortgage needs

When it comes to spray foam roof insulation and your mortgage, if it is present in a property you want to buy, then it can cause problems when you apply for a mortgage. Although different lenders have different approaches.

David Hollingworth from award-winning brokers L&C explains, ‘Lenders will often take the position that they wouldn’t rule out lending on properties with spray foam and will often be reliant on the valuer comments to dictate whether it’s acceptable. Others recognise that this is increasingly common and give a little more context on what could help, for example looking to see that it’s been installed correctly by a qualified installer eg Trustmark and that it comes with a warranty. However if the valuer has concerns it’s likely to result in more investigation or in it being determined as unsuitable for mortgage.

‘Unfortunately, further investigation would often require removal of the foam.’

Also when it comes to spray foam roof insulation and your mortgage it’s worth bearing in mind that if the foam has been used to help stabilise a roof in need of repair this will usually mean the mortgage application will be declined.

If you are keen to proceed with the purchase of the property you could ask the seller to remove the insulation or get a quote for removal yourself and ask them to drop the price in order to get it removed. Although there may be damage underneath the foam that also needs rectifying.