Mortgage access issues linked to spray foam insulation were pushed up the political agenda this week as industry leaders met with the government to address growing concerns.
Sarah Garry (main picture, right), Chief Executive of the Property Care Association, warned that defective installations are leaving homeowners unable to sell or remortgage.
The issue was raised at a roundtable hosted by Minister for Energy Consumers, Martin McCluskey MP (main picture, left), with lenders, industry bodies and consumer groups in attendance.
Spray foam insulation has become a major flashpoint in the housing market, with around 250,000 UK homes affected. In many cases, lenders are unwilling to provide finance due to concerns over poor installation, which can trap moisture and lead to damp, mould and timber decay.
POOR INSTALLATION
Garry says: “Spray foam installations and inability to access mortgages remain one of the top reasons for which constituents contact their local MPs.
“In a small-scale survey conducted with trained spray foam surveyors last year, the PCA found at least one third of cases identified had defects due to poor installation and 27% of those were likely to require re-quilting to the roof or re-roofing.”
The roundtable concluded that clearer communication with homeowners is needed, alongside better guidance on pre-installation surveys and access to qualified professionals for remediation work.
WORKING WITH INDUSTRY
McCluskey adds: “Having valuable conversations with those who know the issues with spray foam best is essential to addressing the problems homeowners are facing with their properties and obtaining finance.
“We are working with industry, lenders and consumer protection groups to explore strengthening enforcement against rogue traders and ensure the presence of spray foam does not automatically preclude lending.
“This is part of our wider work to fix the broken system we inherited and protect consumers from bad practice, by overhauling the retrofit landscape as part of the Warm Homes Plan.”
ANSWERS NEEDED NOW
The HomeOwners Alliance, which is campaigning alongside the PCA, says homeowners are already feeling the impact.
Chief Executive Paula Higgins says: “It’s positive to see government, lenders and industry coming together at this roundtable to tackle the growing spray foam problem. But homeowners are already stuck – unable to sell or remortgage – and they need answers now.
“Some lenders will lend where spray foam has been properly installed with the right paperwork, but others need to take a more flexible, evidence-based approach. If insulation has been in place for years with no signs of damp or decay, that should give confidence the risk is low.
“What’s needed now is clear, consistent guidance – urgently – so homeowners aren’t left in limbo.”
In response to the issue, the PCA has introduced a spray foam inspection protocol and a register of qualified surveyors, aimed at providing reassurance to lenders and improving standards across the sector.
Consumer guidance has also been updated in collaboration with industry bodies, as efforts intensify to bring consistency to a market that is increasingly causing friction in property transactions.
