The HomeOwners Alliance has raised concerns over spray foam insulation in response to the launch of a government consultation on the Energy Company Obligation Plus (ECO+) scheme, warning that it makes homes difficult to sell.

ECO+ is designed to deliver energy efficiency measures in homes across Great Britain from 2023-2026, and the Department for Business, Energy & Industrial Strategy (BEIS) is now seeking views on the scheme ahead of publishing a draft impact assessment.

The HomeOwners Alliance is worried about the prospect of spray foam insulation making it onto the list of approved measures, warning that the procedure raises red flags for mortgage lenders.

Spray foam insulation comes in open cell and closed cell forms, and the HomeOwners Alliance has highlighted the latter as being problematic.

A spokesperson for the organisation commented: “At the moment those who have spray foam insulation in their homes cannot sell or get equity release unless they spend thousands removing it. This is because the lenders won’t lend. And to make matters worse, the government is training installers under its Skills for Life programme.”

Paula Higgins, HomeOwners Alliance chief executive, urged the government to “sort the mess out” before ECO+ is finalised.

“For years spray foam roof insulation has been on a government list of approved measures and homeowners have been able to access government grants to reduce the cost of installing it in their homes, so we are shocked and dismayed that homeowners doing the right thing are now being financially penalised, they either pay over the odds to remove the spray foam or remain stuck with homes they will find difficult to remortgage or sell.

“Homeowners can’t be expected to pay for government-backed energy efficient measures only to have to pay twice over again to get it removed when they come to sell or remortgage.

“If lenders and surveyors can’t agree a sensible view on spray foam insulation then homeowners need to be warned upfront and the government needs to require insulation companies to run a warning of the consequences of installation on their marketing material.”