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Government will ‘not intervene’ with unmortgageable Green Grant spray foam homes

  • 22/06/2022
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Government will ‘not intervene’ with unmortgageable Green Grant spray foam homes
The government has no plans to find a solution for people whose property values have declined or those who are unable to get a mortgage due to spray foam insulation paid for by the state.

In a written question, Lyn Brown, shadow minister for foreign, commonwealth and development affairs, asked if there were plans to redress people who have been affected by the installation which was paid for through the government’s green homes grant scheme. 

The Green Homes Grant Voucher scheme was launched in September 2020 and closed six months later. It allowed people to claim up to £10,000 to cover the costs of eco-friendly home renovations, which included various forms of insulation. 

Around 39,000 vouchers were issued through the scheme.  

Last year, an investigation by the Residential Property Surveyors Association (RPSA) revealed that 250,000 homes could be unmortgageable because of spray foam insulation intended to make homes energy efficient. More recently, the association suggested that similar under floor insulation may also affect a homeowner’s ability to obtain property finance.

The trade body found mainstream lenders and equity release providers were refusing to lend to homes with this feature. 

Greg Hands, minister of state for the Department for Business, Energy and Industrial Strategy, said: “Decisions concerning pricing and availability of mortgages are commercial decisions for lenders. The government does not seek to intervene in these. 

“Spray foam is acceptable under Publicly Available Specifications 2030/2035 standards which are a pre-requisite for many government schemes. This provides the customer with security and guarantees against work delivered.” 

He added: “Under the Voucher Scheme, it was the responsibility of a certified installer to recommend an appropriate product that meets standards, with homeowner’s responsible to decide measures they want to install. 

“In order to be eligible as an installer for the scheme, tradespeople must be registered with TrustMark, which has a robust framework of operating requirements, including dispute management.” 

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