This week’s first comment comes from the piece: Firms will lend on spray foam homes with more certainty – HBS roundtable
Andy Wilson said: “The primary concern with spray foam insulation in residential properties is the potential for trapping moisture against timbers, leading to rot. Identifying this issue is challenging without removing significant portions of the foam. Despite claims by manufacturers that ‘open cell’ formulations are safe, roofing experts and foam removal companies argue that open cell can cause damage similar to closed cell insulation.
“In early 2022, the Residential Property Surveyors Association (RPSA) conducted a study involving stakeholders such as surveyors, foam manufacturers, roofing specialists, Heritage England and Scotland, university academics, installation firms and mortgage lenders to establish when foam insulation might be deemed acceptable.
“The working party, comprising members from the stakeholder group, reviewed evidence and ultimately concluded that no installation could be considered truly safe.”
He continued: “However, a well-funded foam manufacturer threatened legal action against the RPSA for their published findings, forcing them to retract their guidance, although some argue that the validity of their conclusions remains.
“From the perspective of lenders, valuers assessing properties with foam insulation lack the time and incentive to debate the safety of specific installations. While warranties from installers are often offered, they typically cover only foam product failure, and many installation firms lack insurance backing.
“Despite some installers promoting British Board of Agreement approval, this only represents a minimum standard for building materials. The effectiveness of foam insulation is not in question when installed correctly.”
Wilson added: “In March 2023, the Property Care Association issued an inspection protocol for building professionals, outlining the process for assessing spray foam installations. This protocol involves a comprehensive evaluation, including documented assessments of the roof space, moisture testing of timbers, and commentary on whether the installation meets as yet unconfirmed industry standards.
“Surveyors need diverse skills across various building disciplines, but this poses two challenges: the high cost of producing such a report may be economically burdensome for homeowners who cannot be guaranteed to subsequently get the mortgage funding they require, and there is also a shortage of qualified surveyors in this specific field. Training new surveyors is possible, but viability depends on sufficient business to support them.”
He said: “The lack of government intervention is failing the public, particularly in instances where funding has been provided for new installations in the past. When I raised this concern with the Green Grants department, their response was that they offer energy-saving funding without specifying the type of insulation to be used. Some legal firms are pursuing class actions against installers, but significant success stories are not yet apparent.
“In my opinion, spray foam insulation will remain a significant concern for mortgage and equity release lenders. Naturally, they are unwilling to price their products considering the potential risk – such as the extreme scenario where a borrower might eventually face the need for a new roof they cannot afford. The costs associated with removing spray foam insulation often exceed the initial installation expenses.
“Unfortunately, we can expect to see many homeowners, particularly many who are elderly, grappling with the need for foam removal and subsequent damage repair. It appears that little is being done to curb unscrupulous installers who are well aware of the potential harm their products can cause.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.
