A Foamidable Challenge — Spray Foam Insulation: Breaking Down the Risks

The last 2 years of sky-high energy prices have led many households to look for ways to reduce their bills. Insulating your home can be an effective way of doing this, with some being able to save several hundred pounds a year. If all UK homes were upgraded to an EPC C or higher (Energy Performance Certificate ratings help indicate the energy efficiency of a building, with A being the most efficient), this would save consumers £24 billion on their energy bills by 2030. However, choosing the right product can be difficult, with many different options available and a lack of impartial advice about what is best for each individual.

We need to talk about spray foam

In recent years, spray foam insulation has become a popular choice for many homeowners as it is readily available and can be installed quickly. However, we have seen a rise in the number of complaints linked to spray foam insulation.

What is spray foam insulation?

It is a form of insulation that is ‘sprayed on’ as a liquid and then expands into a foam to help trap in heat. It is used to insulate walls, ceilings, floors and roofs in residential and commercial buildings (in this blog, we are mainly referring to its use in residential roofs).

It can be an effective form of insulation. However, when installed inappropriately, it can cause problems with ventilation, leading to damp and in some extreme cases decomposition of timber-framed roofs.

To show this, we can look at the number of complaints to our consumer service that reference spray foam insulation. In 2020 and 2021, complaints related to spray foam insulation were relatively low. However, as we came into 2022, a concerning trend emerged. What began as a modest increase in complaints turned into a rapid spike. From 2021 to 2022 we saw a 45% increase in the number of complaints. Since then, the number of cases mentioning spray foam as an issue has remained consistently high.

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What is behind the problem?

Rogue traders have exploited consumer interest

The surge in issues can be partly attributed to rogue traders, especially in the realms of cold-calling and door-to-door sales. When these tactics are used, a lot of the time, they are used to prey on the vulnerable; often elderly homeowners. In these instances, it is common for these traders to offer to install spray foam in properties where it is inappropriate to do so. We also often see these traders employ aggressive sales tactics: including pressure selling, lying about the benefits of spray foam, not giving consumers the necessary pre-contract information and getting people to waive their cooling-off period.

As the issue has grown in prominence, we have also seen a newer trend of traders pressure-selling spray foam insulation removal. While many households with spray foam insulation may ultimately need to pay to have it removed, this pressure-selling often results in them being heavily overcharged for the service. In addition to this, we have also seen instances where the removal was not necessary and even some cases where the property did not even have spray foam insulation in the first place.

Many households with spray foam insulation can’t get mortgages

The biggest financial impact of incorrectly installed spray foam often happens when people try to sell their homes, remortgage or release equity. Spray foam in roofs can make inspecting the roof complicated. It can hinder the detection of leaks (which can lead to damp) and other structural issues. It can also disrupt natural ventilation, trapping moisture and risking structural decay. As a result, lenders will often refuse to offer mortgages and other finance options to properties with spray foam insulation unless there is proof that correct steps were taken during the installation. In the past, some lenders had a blanket ban — meaning that the household would have to pay for the insulation to be removed before they can sell or release equity from their home.

These stories have been in the news, and the knowledge of the problem is growing. This has been reflected in the number of clients contacting us that have heard about this issue and were concerned that their insulation may lead to complications and now wanted to remove it.

James

James was cold-called by a trader offering him open-cell spray foam insulation under the premise that it would add £30k to his home’s value and make it more appealing to potential buyers. The trader claimed exclusivity in offering this insulation through a government grant. James was convinced, so got the work done. However, over a year later, and needing to sell his house, James is struggling to do so because the type of spray foam insulation the trader installed renders the property ineligible for mortgage approval. Now facing financial strain and struggling to keep up with his current mortgage, James finds himself trapped. He is unable to afford the removal of the insulation, with no ability to sell and downsize and with the threat of repossession looming. He feels like he has nowhere to turn.

What needs to happen to protect consumers?

Government has recognised that this is an issue. But more needs to be done to both ensure that spray foam is more regulated and that it is not used in situations that are not appropriate.

#1: Government needs to make it a requirement for installers to be accredited to operate in the retrofit market

Lessons need to be learned from this otherwise we risk undermining confidence for people taking steps to decarbonise their homes. Government should set up a sector-wide quality assurance scheme for the low-carbon retrofit market, and it should be mandatory for all traders to be a part of it in order to operate in this market. As well as spray foam insulation, we want to make sure that households can have confidence that other technologies like heat pumps will be properly installed — especially if the Government wants to hit the target of 600,000 installations a year by 2028. It’s also vital that consumers have access to independent advice and redress if something goes wrong

#2: Lenders need to review their policies in line with revised guidance for surveyors

We also want to see lenders doing all they can to support properties that can show that correct steps were taken during the installation of spray foam insulation. The Property Care Association published guidelines last year on how to inspect a property with spray foam insulation. We want lenders to try and adhere to these guidelines to decide if they are able to provide finance or not. When this issue first emeged some lenders even had have a blanket policy of not lending to those who had spray foam in their property, resulting in households having to pay lots of money for the insulation to be removed even if it was fitted correctly.

As we continue to decarbonise our homes and more and more people look to make energy efficiency upgrades to their properties, protections in the retrofit market will become increasingly important. If left unmanaged, we could see thousands of households fall victim to rogue traders.

If you think you may have been affected by the issues raised in this blog or would like some advice on improving your energy efficiency, you can have a look at our website. We’ve also included some guidance below if you are considering installing spray foam insulation in your home:

• Don’t Rush into Decisions: If you have a trader knock on your door or call you out of the blue, don’t jump into an agreement right away. Take some time to ensure it is right for you, even if they offer discounts for on-the-spot decisions
• Get multiple quotes: Shop around different traders and try to get a few different quotes. First of all, this will give you a good idea of the right price for the work. But, it may also reveal that spray foam insulation is not suitable for your property; a more reputable trader will tell you this and won’t offer to do the work
• Check Reviews and Certifications: Ensure the trader you choose to go with has a significant number of good reviews. You may also want to check if the trader has any accreditation around home improvements like this (such as a PAS 2035 via an assessment body) or is a member of a consumer scheme like Trustmark
• Ask for Documentation Upfront: Some lenders will allow you to provide documents to prove that your spray foam has been installed correctly and with due diligence. When having spray foam installed, The Royal Institute of Chartered Surveyors (RICS) recommends getting: ‘the installation contract, relevant calculations, works carried out to the roof, any guarantee or warranty and any independent test certificate, for example, a BBA or Kiwa certificate.’ Ensure you are able to get this documentation; ask if you will get this before the work has started, and if they cannot or will not provide this, do not go ahead with the work
• Consider getting an Independent Surveyor: If you can, get an independent surveyor to give their advice on whether spray foam is suitable before the work is done. It may be expensive up front — but could save you thousands of pounds down the line