We recently undertook a survey on a property that has spray foam insulation to the rafters within the loft space. This type of insulation is a liquid foam that is sprayed onto the underside of the roof pitches to provide an extra layer of insulation to the property.

It is becoming increasingly popular across the UK as it can provide more insulation in less space than the traditional wool or insulation boards, such as Celotex, and can also help to reduce drafts and make the property more airtight.

However, for all the good that it can do, it also causes issues with some lenders. The problem, in this case, is that the lender that we undertook the inspection for refuses to accept homes with spray foam insulation as a suitable security for a mortgage or lending. We are also finding that other lenders are following suit and are reluctant to lend on a property that has this type of insulation installed in the roof.

Does Spray Foam Insulation Affect Your Mortgage Potential?

The property that we visited was not fully declined by the lender as an outright no but the owner of the property needed to have the roof replaced in order for the property to meet the acceptable standards for the lender. This meant that the existing roof needed to be taken off and everything needed to be new, the timbers, felt and all the tiles. This all came at a financial cost to the owner, not to mention the emotional rollercoaster that they would have had to have gone through to be rejected for the mortgage and then to have the roof replaced, all because there was spray foam insulation present.

Now, this doesn’t mean that spray foam insulation is a bad thing, it has been used for more than 30 years in the UK and many lenders still deem it an acceptable improvement but, if more and more banks and lenders are refusing to lend or give mortgages on properties with spray foam insulation then it may prove to be more and more difficult to sell your property or to re-mortgage in the future.

In the long-term, this may cause the value of your property to decrease as there could be a situation where there is a lack of available funding to a possible buyer unless the property undergoes an expensive roof replacement being needed which will be at the cost of the owners either directly or through the agreed purchase price of the sale.

If you currently have a mortgage and are considering having spray foam insulation installed then it would be wise to check with your lender that it is an acceptable improvement to them otherwise you may be in for an unwanted surprise and work needs to be done to the property if they were to discover the insulation.

Previously we have regularly provided valuation reports for Help to Buy purposes. In order to provide these valuations an internal inspection of the relevant property was undertaken. However, in light of the current Covid-19 situation Target (HCA), who undertake administrative duties in relation to the Help to Buy scheme, have advised that they will know accept a valuation provided on an External Inspection/Desktop basis.

As no internal inspection would be undertaken they have stated that their requirements in relation to comparable evidence will be amended as follows:-

The surveyor must provide at least six comparable properties and sale price. If six are not available, the surveyor must state this clearly. These comparable properties must be like for like in terms of type, size, and age and within a two-mile radius to the property being valued. They must also be within 10% of the market value of the property.

We are undertaking valuations on this basis and are happy to provide a quotation accordingly.

A complex question and one with no certain answer. In these uncertain times it seems the only thing that is clear, is that no-one is quite sure of anything. However, various market commentators have outlined possible scenarios, some of which are included below.

Prior to the outbreak it seemed the outlook was good. With a conservative majority in place and the Brexit saga coming to a close, the phrase ‘Boris Bounce’ was coined to describe the uplift expected. However, a global pandemic was not factored into these predictions. The estate agent Savills considers the significant factors of the pandemic impacting the housing market to be; the practical and logistical challenges of transactions completing successfully, the impact on buyer sentiment and reduced affordability for those working in the worst financially affected industries. Aside from the obvious long term impact of how job losses may impact individuals and the market, in the short term there is almost a physical barrier to transactions being able to complete or progress as many of the parties involved with a transaction are confined to their homes.

Which? published an article, citing estate agency firm Knight Frank, predicting that “UK house sales will plummet from the 1.175 million recorded last year (2019) to just 734,000 this year”. They also predict that 2020 prices will fall by 3%, however, will bounce back by 5% in 2021. The timeframe of any impacts on the housing market is particularly difficult to anticipate as we are currently still in the early stages of attempting to contain the virus and the recovery process and timescale remains unclear.

The Financial Times have also given their take on the likely impact of Covid-19, stating that transactions may reduce even more dramatically by up-to 50%. In the same article, a representative of Zoopla predicts the most significant reduction of transactions is likely to come from May/June 2020 statistics.

On the bright side, policy makers are taking steps to limit any negative impacts. The Bank of England have cut the base rate to an all-time low of 0.1%. Potentially good news for borrowers, less-so for savers. So will this be enough to encourage those with money in the bank to invest once restrictions are relaxed? Time will tell.

In summary it is unclear what the outcome for any given individual or property may be. It is likely that transaction statistics will be greatly reduced, as the market has been effectively paused for a period. How long this period of stagnation goes on for depends greatly upon government guidance. Once it is deemed safe for social distancing restrictions to be relaxed and surveyors, estate agents, solicitors and buyers themselves are able to return to some form of normality, only then will the structure be in place for the market to function.

What impact the reduction of transactions will have on price is also difficult to predict. A simple supply and demand model would assume that less homes on the market would drive prices upwards. However, as we saw in the recovery from the recent financial crisis, when buyer sentiment is affected everyone tends to wait for someone else to make the first move. So, it may also be a case that demand is low and the market takes time to recover.

Contact Us

For now, h&s have taken the decision to limit physical inspections of property to help prevent the spread of the virus. Once restrictions are lifted, we look forward to helping to advise on your purchase. In the meantime, you can get in touch with us via the Contact Us page and would like to wish all our clients well. Stay safe.

With Spring fast approaching and the cold Winter months almost at an end, you might be planning a spring clean. You’re moving all of your furniture around to get a good clean and notice that there is a blackish green mould patch on the wall behind the sofa.

That’s condensation mould! It forms on water that has condensed back from a gas into a liquid as it cools allowing mould spores, that are always floating freely in the air, to attach themselves to the moisture and spread.

Whilst condensation is a form of dampness, its causes are normally reflective of the lifestyle of the occupants rather than a defect per se. By drying clothes on radiators, we are adding moisture to the air within the home and without proper ventilation (opening a window) providing an escape for the excess moisture, it is likely to lead to condensation when it cools.

Stopping Condensation

So how do we stop condensation, or at least reduce it?

There are several things we can do to help reduce the level of moisture in the air within our home, here are some examples;

• Produce less moisture, try not to dry clothes on the radiators and when possible dry them outside.
• Remove excess moisture, open the windows and allow the excess moisture to escape.
• Heat your home adequately, heating the home allows the moisture to be warmed up and return to the air rather than be settled on the walls or windows. It is then easier to remove.
• Improve ventilation, as it is not always possible to open the windows you could incorporate some form of mechanical ventilation to allow the excess moisture to leave your home.
• Keep furniture away from the walls, this provides space for the air to circulate rather than sit stale behind the furniture and cool. Once it is circulating, the moisture in the air can be removed by ventilation.

Striking the right balance between warmth, ventilation, circulation and production of moisture is important and can be very effective at reducing condensation but by opening windows or ventilating your home it may appear that you are losing some heat, but what you are actually doing is allowing warm moisture-laden air to escape and allowing dry air to enter your home reducing the moisture content within the home that causes the condensation.

This doesn’t mean keep your windows open in the middle of the winter and whack up the heating as that would be a waste of your money but try to remember to open the windows when your activities are producing moisture, when showering, boiling water for cooking or drying clothes inside for example.

Mould Formation

What do we do about the mould that has already formed behind the sofa?

Well, this is slightly easier as all its takes is a bit of diluted bleach or fungicidal wash, following any instructions on the bottle, and wipe over the affected area until it is clean. It may take 2 or 3 passes with a cloth to ensure that the area is clear of mould spores. It is important that you wipe the mould away rather than brush or scrub at it as this can lead to the mould spores being released back into the air to float around and find another patch or condensation to grow on.