While the Green Homes Grant scheme closed in 2021, spray foam insulation is still available under the Great British Insulation Scheme as the government seeks to improve the energy efficiency of homes and drives towards its 2030 “net zero” target.
Rico Wojtulewicz, head of policy at the National Federation of Builders, said he had been trying to raise awareness of potential issues with spray foam insulation for years.
“Government may view spray foam as an easy solution but an un-mortgageable, unhealthy or damaged home is a worse outcome than requiring greater retrofitting thought or more expensive heating,” he said.
He is calling for the government to work with installation companies.
It comes as Liberal Democrat MP Tom Gordon has written to Energy Secretary Ed Miliband, calling for “decisive action” and “support” for homeowners facing financial repercussions.
Mr Gordon said he was moved to act after he and many of his party’s MPs had been contacted by constituents facing unexpected costs, the letter said.
“This government must do more to support them,” it added.
The Department for Housing told the BBC it had “consulted lenders” on spray foam insulation, and it would “rely on the views of valuers and surveyors on this issue”.
It said any measures fitted under government schemes must be done by a Trustmark-registered installer and to the highest standards, with any issues fixed promptly.