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February 12, 2025
The HomeOwners Alliance has joined forces with national trade body Property Care Association to call for action on spray foam insulation problems.
Currently around 250,000 UK homes have spray foam insulation – it’s a product that has been 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. The government’s ECO4 grant and Great British Insulation Scheme (GBIS) both fund the installation of spray foam.
Given their role in promoting the product, we are calling on the government to step in to help those homeowners who have spray foam and now find themselves in the position where they are unable to remortgage, stuck as their buyer is unable to get a mortgage, are unable to access equity release products, are faced with hefty remediation bills for removal and/or are being targeted by unscrupulous spray foam removal firms. Many of these homeowners are elderly and vulnerable.
The problems and costs involved are so significant that we have issued a warning to homeowners NOT to install spray foam for the time being.
You can read our letter to Ministers here
Recent research we conducted with the BBC highlighted how only 25% of mortgage lenders, and no equity release providers, will lend on properties that have spray foam installed as a retrofit measure.
Despite reassurances from other mortgage lenders that they will lend on houses with spray foam installed, the reality is quite different: homeowners are being given false hope and simply made to run around paying out for yet more surveys and expert investigations in an attempt to satisfy lenders and valuers to no avail. This is evidenced by the over 160 homeowners who contacted the BBC immediately after publication of our joint research, the emails and comments received by HomeOwners Alliance (see the very insightful comments at the bottom this page), as well as the interventions made by MPs following this statement made to the House of Commons on the ECO4/Great British Insulation scheme on 23rd January.
We understand lenders are concerned that different types of sprayed polyurethane foam can lead to trapped moisture. The inability of moisture to escape can cause mould, damp and timber decay. These are the same problems as with solid wall insulation. But even when installed by legitimate firms and with the correct paperwork, lenders are still reluctant to lend where spray foam is present.
Paula Higgins, Chief Executive at HomeOwners Alliance, said:
“The ECO4 grant and Great British Insulation Scheme (GBIS) both fund the installation of spray foam to eligible households. It can’t be that homeowners convinced to install spray foam at a significant personal financial cost, and in many cases with help of government grants, are now faced with bills for hundreds if not thousands of pounds to remove the product – far exceeding the original installation costs – in order to be accepted by lenders or release equity from their homes.
“We also call on the government’s assistance to stamp out the rogue spray foam removal companies who are scaring homeowners to remove the insulation and are causing even further damage to their homes.”
In a joint letter to Miatta Fahnbulleh Minister for Energy Security and Net Zero and Ali Rushanara MP, Minister for Ministry of Housing, Communities & Local Government, the two organisations have asked for a roundtable discussion on the issue of spray foam insulation.
The PCA has created an inspection protocol and set out a register of surveyors providing assurance to residents and lenders that the surveyors assessing homes where spray form has been installed were adequately trained and audited, but concerns persist over installation.
Sarah Garry, Chief Executive of the PCA, said: “In 2023 the PCA worked with lenders and building experts to create our Sprayed Foam Inspection Protocol and early last year created a register so homeowners and lenders could be assured that the people assessing the spray foam had the appropriate training. We understand lenders are concerned that different types of sprayed polyurethane foam can lead to trapped moisture and that the inability of moisture to escape can cause mould, damp and timber decay. These are the same problems as with solid wall insulation. But even when installed by legitimate firms and with the correct paperwork, lenders are still reluctant to lend where spray foam is present. We ask the government to bring together a roundtable of specialist property experts, lenders and equity release companies, to agree whether spray foam should continue to be included within government grants and to agree a process to support homeowners who have spray foam installed.
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March 25, 2025 
