More than 20,000 UK households are trapped in homes they cannot sell or remortgage, all because of a layer of spray foam in the loft. The material, once marketed as a quick fix for heat loss, has been blacklisted by major lenders including Nationwide, Halifax, and Santander. Now, the government is consulting on how to fix a problem it helped create.
As reported by This is Money, the Department for Levelling Up, Housing and Communities (DLUHC) has launched a consultation seeking evidence on how spray foam affects property condition and mortgageability. The move follows years of complaints from homeowners who installed the foam under the Green Homes Grant or through private contractors, only to discover their homes were effectively unsellable.
How spray foam wrecks EPC ratings and mortgage offers
The problem is not the foam itself, it is how it is applied. Open-cell spray foam absorbs moisture, and closed-cell foam can trap it. When installed in a loft or under roof tiles, it prevents the timber from breathing. Damp builds up. Rot sets in. Surveyors flag it. Lenders refuse to lend.
Energy Performance Certificate (EPC) assessors have also struggled. The government’s own guidance says spray foam should be noted as a potential defect, which can drag a property down to an EPC band E or F even if other insulation is good. A home that would otherwise score a C becomes unsellable at any price.
For a typical 3-bed semi, the cost of removing spray foam runs between £1,500 and £5,000, depending on the area and whether roof tiles need replacing. Some specialist removal firms charge over £8,000 for a full strip and re-roof. Homeowners who received Green Homes Grant vouchers for installation now find themselves paying again, this time to undo the work.
Who qualifies, and who doesn’t
The government consultation is open to homeowners, surveyors, lenders, and installers. It closes on 31 October 2024. But the key question for trapped owners is: will there be a remediation grant?
DLUHC has not committed to funding removal. The consultation document asks whether new guidance, a licensing scheme for installers, or a financial support package would work. The Treasury, however, has made no allocation. The catch is that many affected households are low-income or in fuel poverty, exactly the group the Green Homes Grant was meant to help. They cannot afford removal, yet they cannot access the Boiler Upgrade Scheme or other retrofit grants until their EPC improves.
Energy Saving Trust data shows that poorly installed spray foam can reduce a home’s energy efficiency by up to 30% compared to properly ventilated insulation. That means higher heating bills, often £200–£400 a year more, on top of the removal cost.
What to do if you have spray foam
If you suspect spray foam in your loft, the first step is a professional survey. The Property Care Association (PCA) maintains a list of approved contractors who can assess the risk. Do not remove the foam yourself, it can contain isocyanates, which are hazardous without proper PPE.
If your surveyor flags spray foam as a defect, ask for a specific spray foam assessment rather than a blanket refusal. Some lenders, including Nationwide, will consider a mortgage if a structural engineer confirms the timber is sound and the foam is not trapping moisture. But that report costs £300–£600 and is no guarantee.
For those looking to sell, the cheapest route may be to price the property as a cash-only sale or to a specialist buyer who can manage the removal. But that typically means accepting 20–30% below market value. The government consultation may change the rules, but it will not change the physics, wet timber rots, and lenders hate risk.
FAQ
Can I get a grant to remove spray foam insulation?
Not yet. The government consultation may lead to a remediation scheme, but no funding has been announced. Homeowners are advised to contact their local authority’s energy advice service for any discretionary support.
Will spray foam always stop me selling my house?
Not always. If the foam is professionally installed with proper ventilation and a structural engineer confirms no moisture damage, some lenders may accept it. But most mainstream lenders, including the big five, currently decline properties with spray foam in the roof space.
Frequently Asked Questions
Not yet. The government consultation may lead to a remediation scheme, but no funding has been announced. Homeowners are advised to contact their local authority's energy advice service for any discretionary support.
Not always. If the foam is professionally installed with proper ventilation and a structural engineer confirms no moisture damage, some lenders may accept it. But most mainstream lenders, including the big five, currently decline properties with spray foam in the roof space.
