Spray foam insulation is lauded as an optimal solution for amplifying your residence’s energy efficiency, given its pliability and ability to reach troublesome areas like wall hollows and lofts. However, in the UK, around 300,000 proprietors who have adopted this method now find themselves in a predicament with banks adding constraints to mortgages on residences equipped with it. In addition, lenders decline to grant equity release on such dwellings.
In Ireland, however, incentives for this insulation variant continue to be provided by the Sustainable Energy Authority of Ireland (SEAI), much against the cautionary advice of building surveyors. The key concern is whether homeowners with this insulation should be anxious and those contemplating its installation should reconsider.
Spray foam insulation, developed over three decades ago, is a technique designed to conserve heat in dwellings. It serves as an alternative to the external layering or internal heat panels. It deploys a liquid foam, sprayed into walls and roof spaces, which swells to fill crevices and form a barrier against cold. It is frequently employed to insulate roofs and lofts, with installation charges usually between €20-35 per square meter, excluding VAT.
The convenience of installation and capability to infiltrate difficult areas by establishing an uninterrupted layer over traditional procedures seems enticing, according to Fergus Merriman, chartered building surveyor and founder of Merriman Solutions. However, if incorrectly installed, it may lead to complications and even when erected correctly, it can mask matters that may escalate into significant problems down the line.
In fact, a study issued in March by the UK’s Health and Safety Executive revealed that insulating timber sloped roofs at the rafter level may introduce or hide moisture issues. The report warned that such predicaments could potentially prompt the decadence of roof timbers and bordering fabric elements. It predicts that 25% of roof timbers may rot within five years of applying spray foam directly on roof tiles or certain underlays, with properties situated further north potentially facing more dire consequences due to the weather conditions.
According to the Royal Institution of Chartered Surveyors (RICS), a guidance document indicates that certain types of spray foam insulation could obscure potential issues with a roof by restricting visibility inside. This could mean the roof is not fully inspected or seen. It warns that behind these kinds of insulation, a roof leak may go unnoticed and could lead to timber decay.
Merriman highlights that improper use, incorrect material or substandard workmanship are the typical culprits for these issues. However, in some situations, the application of this insulation has triggered disastrous structural failures.
Given these circumstances, it is hardly surprising that lenders in the UK, who are either incapable or unwilling to assure the quality of work, are outright declining properties with spray foam insulation. One homeowner described in a Guardian article that her loft conversion was approved by the local council around ten years ago. However, when she wanted to sell the property, she was informed that the value was virtually nothing until the insulation was removed.
This could spell trouble for anyone in the UK wishing to sell their property. As a prospective buyer with a mortgage may not be able to proceed, and the home’s remortgage or equity release may be hindered.
Merriman further adds that the unclear impacts, unforeseen consequences and burgeoning costly repair concerns associated with these systems is escalating the risk for companies offering mortgages and insurance.
A Nationwide spokesperson, a lender in the UK, confirmed that while they would provide loans on properties with spray foam insulation, it might require a surveyor’s report beforehand. They expressed concerns over instances where the foam had been ineptly installed in rooftops, potentially damaging the roof structure. In such situations, where appraisers observe spray foam, the lender demands written proof of correct installation before agreeing to lend.
We inquired with HSBC’s UK branch regarding their policy on issuing loans. They responded that they don’t approve the application of spray foam insulation for heritage buildings. However, they might consider it permissible for other buildings if a particular specialist report (consistent with the guidelines of the Property Care Association) verifies its proper installation and warrants it.
However, according to the HomeOwners Alliance (HOA), none of the lenders offering equity-release agree to lend the properties with spray foam roof insulation, primarily due to the risk of them potentially owning the property entirely in the coming years.
Moreover, withdrawing the foam proves to be a strenuous task, amplifying the challenges faced by homeowners. Merriman explains that the application of such systems is meant to attach firmly to the target surface, thus invariably complicating its removal. In the UK, homeowners have been defined removal costs around €4,000.
However, how does the situation appear in Ireland?
Several problems associated with spray foam installation have already emerged. In 2020, the High Court ordered to pay damages totalling €2 million to a husband and wife who alleged exposure to toxic chemicals following the installation of spray foam insulation within their home.
Despite identifying that spray foam insulation is essentially safe if applied suitably with appropriate safety measures – which were not considered in this case – and the usage experience in the UK, there haven’t been considerable changes within the country.
The Bank of Ireland’s spokesperson confirmed that the use of spray foam insulation hasn’t influenced mortgage rejections. Similarly, AIB reported no known issues related to spray foam. According to a spokesperson for Spry Finance, which organises equity release loans, the insulation hasn’t provoked any problems so far.
Similarly, home insurance provider Aviva clarified that it places no limitations, provided the materials meet the necessary admin regulations and are used following the manufacturers’ guidelines.
Remarkably, it is still feasible to apply for a grant supporting the installation of such insulation. The SEAI, which administers the energy upgrade grant scheme, continues to offer grants for certified attic (either ceiling or rafter level) insulation, including spray foam, with amounts from €800 to €3,000.
British homeowners have been specifically vexed by the availability of government grants for spray foam insulation. In this context, one may wonder about SEAI’s perspective on the UK’s progress.
The findings of the March report from the UK, which recommend an air and vapour control layer (AVCL) on the warmer side of insulation alongside ventilation space between the roof underlay and insulation, agree with the opinions of Irish experts. However, they argue that these problems are dealt with in Ireland by the compulsory ventilation and AVCL requirements imposed by the Irish Agrément certificates and the SEAI’s tech specifications supported by its grant schemes.
Every provider that benefits from these grants is obligated to register with the SEAI and to adhere to the relevant best-practices. With regards to spray foam insulation, getting Irish Agrément Certification is a necessity, as it ensures that the installation and materials are suited for Irish homes and weather conditions, in keeping with Irish construction laws.
A representative stated that it’s mandatory for each craftsman responsible for the installation of spray foam to be schooled by the manufacturer in order to meet the Agrément Certification requirements.
Nevertheless, looking at the experiences in the UK, those in construction suggest exercising caution when considering an investment in this insulation type.
While Merriman acknowledges that spray foam could be a viable option depending on the property, he generally suggests avoiding it. “Taking into account the ongoing uncertainties surrounding these products as well as the potential consequential repercussions on insurance and mortgages, I recommend individuals to ponder seriously before pursuing the spray foam path,” he says.