This follows a warning from the Residential Property Surveyors Association (RPSA) that lending restrictions on homes with spray foam insulation could leave 250,000 homes unmortgageable. The Property Care Association (PCA) has joined the RSPA to ask for the regulation of providers.
Alan Milstein, chairman of the RSPA said he did not know of any surveyors who would give security to lenders regarding homes with such insulation installed and said he was not aware of any lenders who accepted homes with this feature.
Milstein said there was “pretty much a blanket ban” on homes with spray foam insulation in the equity release lending space.
He said because of this, there were cases of sales falling through and homes being given a nil valuation.
Sprayed polyurethane (PU) expanding foams are used in the lofts of houses, either to stabilise a failing roof covering or provide extra insulation.
However, there are concerns that because the foam restricts air circulation it could result in condensation and cause wood rot over time.
Milstein said it had recently become a significant problem as many of the installations were “poorly executed” without proper consideration of moisture management.
He also said there were reports of cold calling to vulnerable people, adding: “This has to stop, and proper regulation of the industry is urgently needed. We believe that this is the only way to resolve the current lending impasse.”
Spray foam insulations were one of the approved renovation measures suggested by the government during the run of its Green Homes Grant scheme.
In June, the government said it had no plans to redress those unable to get a mortgage because of spray foam insulation paid for through the initiative.
Steve Hodgson, CEO of PCA, said: “In the coming years we have a huge task to retrofit energy efficiency measures into more than 25 million homes. We need to be sure that any installations are carried out properly and professionally, and only after careful consideration of their impact on a ‘whole-house’ basis.
“The improper use of spray foam insulation can have devastating consequences or end up costing thousands of pounds for little benefit. So, it’s vital that the spray foam industry is properly regulated and managed.”
Milstein said the associations had already started to engage with those in the spray foam sector to create a regulatory framework.
He added: “Our challenge to them is to come forwards and work with us to regulate as soon as possible. That means mandatory training and qualification of installers, effective audit and review procedures, and a strict non-supply policy by manufacturers to any installer who is not properly accredited.”
He said to support this, the associations would work with lenders to design inspection protocols to give them the confidence to lend against homes with properly installed spray foam insulation.
“Especially now in the midst of a tightening economic climate we cannot continue to see homeowners placed in such financial distress, often having to find thousands of points to remove insulation that they paid thousands of pounds to install, simply to sell their home. Regulation is needed, and it is needed now,” Milstein added.
