- Introduction
Homeowners across the UK are experiencing significant financial losses due to spray foam insulation installations. These installations, initially intended to reduce energy bills, have led to property devaluation, costly removal expenses, and complications in property sales. This report examines the experiences of affected homeowners and provides guidance on potential avenues for financial redress.
- Case Studies
2.1 Lorna Rolfe – Devon
Lorna Rolfe, a retired occupational therapist from Devon, installed spray foam insulation in her bungalow to reduce energy costs. However, when attempting to sell her property, the presence of the insulation led to a £10,000 decrease in its valuation and the withdrawal of potential buyers due to mortgage refusal. To facilitate the sale, Rolfe incurred an additional £5,000 to remove the insulation, resulting in a total financial loss of £19,840.
2.2 Fiona and Andre Barton – Edinburgh
In Edinburgh, Fiona and Andre Barton faced similar challenges after installing spray foam insulation. The insulation rendered their home unmortgageable, leading to the necessity of removal at a cost of £5,490. This financial burden was exacerbated by the stress of managing the sale of their property and the purchase of a new one.
- Financial Implications
Installation Costs: Approximately £2,500 for a three-bedroom semi-detached property.
Removal Expenses: Between £4,000 and £8,000, depending on property size.
Structural Repairs: If damage necessitates roof or rafter replacement, costs can range from £12,000 to £20,000.
Property Devaluation: Homes with spray foam insulation may experience a decrease in value by at least £20,000, and in some cases, may become unsellable.
These financial impacts are compounded by the fact that many banks refuse to offer mortgages on properties with spray foam insulation due to associated risks.
- Legal and Financial Redress Options
4.1 Section 75 of the Consumer Credit Act
Homeowners who paid for the spray foam installation via credit card may be eligible to claim a refund under Section 75 of the Consumer Credit Act. This legislation holds credit card companies jointly liable for breaches of contract or misrepresentations by suppliers. To initiate a claim, homeowners should provide evidence of misapplication or misrepresentation, such as independent assessments confirming improper installation.
4.2 Chargeback for Debit Card Payments
For payments made with debit cards, homeowners can pursue a chargeback through their bank. This process involves requesting the bank to reverse the transaction, provided the claim is made within a specified time frame and with adequate supporting documentation.
4.3 Direct Complaints to Installers and Manufacturers
Affected homeowners should first lodge formal complaints with the installation company. If the response is unsatisfactory, escalating the complaint to the manufacturer may yield results. Maintaining detailed records of all communications and transactions is crucial in these processes.
- Recommendations for Homeowners
Conduct Thorough Research: Prior to installation, homeowners should consult independent experts to assess the suitability of spray foam insulation for their property.
Seek Multiple Quotes: Obtaining estimates from various suppliers can help ensure competitive pricing and prevent overcharging.
Verify Credentials: Ensure that installers are accredited by recognized industry bodies, such as the Property Care Association.
Maintain Documentation: Keep comprehensive records of all communications, contracts, and payments related to the installation.
Understand Legal Rights: Familiarize oneself with consumer protection laws and seek legal advice if necessary.
- Conclusion
The experiences of Lorna Rolfe and Fiona and Andre Barton highlight the significant risks associated with spray foam insulation installations. Homeowners are advised to exercise caution, conduct thorough research, and be aware of their legal rights to mitigate potential financial losses. By taking proactive measures, homeowners can safeguard their properties and financial well-being.