Key Takeaways
- Around 250,000 UK homes have spray foam insulation, much installed under government-backed grant schemes.
- The Green Homes Grant (2020–2021) and ECO schemes funded spray foam as a legitimate energy efficiency measure.
- Government-backed installation does not exempt a property from lender mortgage restrictions.
- The government will not fund removal — owners must pay.
- The government is pressing lenders to be more flexible with grant-installed homes, but this has not yet produced a binding policy change.
- The Great British Insulation Scheme (GBIS) closed on 31 March 2026.
What the Green Homes Grant Did
The Green Homes Grant was a UK government scheme that ran from September 2020 to March 2021. It provided vouchers — up to £5,000 for most households, up to £10,000 for those on low incomes — to fund energy efficiency improvements to homes in England, including loft insulation, solid wall insulation, and other measures.
Spray foam insulation was included as an eligible measure. Accredited installers could apply spray foam to roof timbers under the scheme, with the work funded or heavily subsidised by the government voucher. Homeowners did not need any special expertise to choose this — the scheme and the installer market actively promoted it.
The scheme was plagued by problems from the start. It closed early, with billions of unspent budget, following criticism of its administration. But by the time it closed, spray foam had been installed in tens of thousands of UK homes through this route alone.
How Spray Foam Became a Mortgage Problem
The mortgage problem was not immediate. Most homeowners who had foam installed under the Green Homes Grant encountered no issue until they tried to sell, remortgage, or release equity.
At that point — when a new lender commissioned a survey — the surveyor flagged the foam, the lender applied its criteria, and the application was declined. Homeowners who had acted in good faith on a government-backed scheme discovered that the same government would not stand behind the consequences.
The problem was compounded by the ECO (Energy Company Obligation) scheme, through which energy companies have been required for many years to install energy efficiency measures in qualifying homes. Spray foam has been installed under ECO schemes in significant numbers. The House of Commons Library, Mortgage Strategy, and the Homeowners Alliance (HOA) have all cited figures of approximately 250,000 UK homes with spray foam as a result of these combined programmes.
The Scale: ~250,000 Homes
The figure of approximately 250,000 UK homes with spray foam is widely cited in parliamentary and industry research. It includes homes that received foam under:
– The Green Homes Grant (England, 2020–2021)
– ECO3 and ECO4 obligation schemes (ongoing, primarily targeting lower-income households)
– Private installation (outside any grant scheme, by homeowners choosing foam independently)
The mortgage problem disproportionately affects those who received foam through grant schemes — because these homeowners typically did not choose the product based on their own research or pay for it with their own funds. Many did not understand the long-term mortgage implications at the time.
The Government’s Position in 2026
The government’s position as of June 2026 involves several distinct elements, which are worth separating clearly:
What the government will do: Press mortgage lenders to take a more flexible approach, particularly for homes where foam was installed under a government-backed grant scheme. This pressure has been communicated to the industry through various channels.
What the government will not do: Fund removal of spray foam. Ministers have been explicit on this point. If your foam needs to come out, the cost falls to you as a homeowner.
What has happened in practice: Government pressure has generated awareness but has not produced a binding change in lender policy. Some lenders have noted their willingness to review cases; none have announced a blanket acceptance of grant-installed foam.
GBIS closure: The Great British Insulation Scheme (GBIS) closed its referral service on 31 March 2026. This scheme was not related to spray foam removal — it funded new insulation installations — but its closure reduces the routes available for other energy efficiency improvements. See our grant guide for 2026 for what remains available.
What Affected Owners Can Do
If your foam was installed under a government scheme:
1. Get an independent PCA-protocol inspection. Grant-installed or not, the starting point is the same: understand objectively what you have and document it. A PCA-registered surveyor’s report establishes the foam type, installation quality, timber condition, and risk level.
2. Speak to a specialist mortgage broker. Some lenders are — cautiously — more sympathetic to documented grant-installed cases. A broker with current knowledge can tell you whether this is true of any lender workable for your situation.
3. Plan for removal if necessary. If removal is required, budget for the realistic range (typically £2,800–£8,000 for a standard loft — a site survey gives a fixed price) and obtain itemised quotes from reputable firms. Do not pay large upfront deposits.
4. Document the grant installation. If you have paperwork showing the foam was installed under the Green Homes Grant or ECO, keep it. It may support your case with certain brokers or lenders even if it does not currently guarantee any different treatment.
The Bottom Line
Many homeowners were encouraged — by the government — to install spray foam in their homes, and many now face the cost of removing it themselves. That is a genuinely unfair situation. But the route forward is clear and fair: independent inspection, then removal and RICS certification if required.
You are not alone in this, and there is a well-established path through it.
Book an independent inspection or request a removal quote.
This is general information, not financial advice — please consult a qualified mortgage broker about your circumstances.
Related reading: GBIS closed in 2026: what insulation grants are left · Will lenders accept spray foam? 2026 outlook · Spray foam insulation in 2026: pros, cons & the UK reality