Trapped by Spray Foam: How Green Home Retrofits Turned into a Financial Nightmare

For thousands of UK homeowners, an attempt to improve energy efficiency has resulted in a loss of financial security, property value, and peace of mind. Spray foam insulation (once promoted as a fast track to greener homes) has become a source of regret for many, trapping them in homes they can no longer sell, refinance, or maintain without significant cost.

A Solution That Became a Problem

Spray foam insulation was widely installed under government-supported schemes such as the Green Homes Grant and ECO4. Marketed as an effective way to reduce heat loss through the roof, the product was eligible for vouchers and VAT exemptions, making it a popular retrofit choice during the UK’s push for net zero.

But behind the thermal promise lies a growing crisis. Homeowners across the country are now reporting serious problems with spray foam installations, ranging from condensation and timber decay to full mortgage rejections. These issues aren’t isolated. According to recent industry surveys, more than a third of installations show signs of significant defects.

Mortgage Blockades and Rising Costs

One of the most alarming consequences for affected homeowners is financial. A growing number of mortgage lenders refuse to approve loans for homes with spray foam insulation unless a specialist survey confirms the installation meets rigorous standards. In many cases, this confirmation is difficult (or impossible) to obtain.

This has left homeowners stuck. Some are unable to remortgage or release equity. Others cannot sell, as potential buyers walk away once surveyors raise concerns. Removal, meanwhile, can cost thousands of pounds and may damage the roof structure. Worse still, some homeowners report being targeted by opportunistic removal companies offering costly or unsafe services.

A Call for Policy Action

Trade organisations and housing campaigners are now urging the Department for Energy Security and Net Zero to intervene. Among the demands are:

• Clearer regulations for spray foam installers and surveyors

• Financial support for affected homeowners

• Independent inspections backed by government-approved protocols

• Action against rogue removal operators taking advantage of the crisis

The Property Care Association has already issued an inspection protocol and is building a register of accredited surveyors. But campaigners argue that government leadership is needed to coordinate a national response.

Lessons from the Fallout

This situation raises deeper questions about how the UK implements its energy efficiency goals. Retrofitting homes remains a key part of the journey to net zero, but the fallout from spray foam shows what can happen when incentives are introduced without robust regulation or public understanding.

Too often, households are left to navigate complex decisions about insulation and energy improvements without access to impartial advice. In the case of spray foam, many were drawn in by the promise of reduced energy bills, only to face long-term costs they never anticipated.

Moving Forward

Spray foam insulation is not inherently dangerous or ineffective. When installed correctly, in the right circumstances, it can be beneficial. But without consistent standards and protections, homeowners remain at risk. For many, what began as a green investment has become a financial trap.

If the government is serious about building a low-carbon future, it must also build trust. That means ensuring energy-efficiency measures do not come at the cost of people’s financial security or ability to move freely in the housing market. Without urgent action, the spray foam crisis could undermine public confidence in retrofitting for years to come.