The property industry has called for urgent government action after a National Audit Office (NAO) report revealed that almost all homes fitted with external wall insulation under the Government’s Energy Company Obligation scheme require remedial work to fix major defects.

The NAO report found 98% of homes with external wall insulation and 29% with internal wall insulation installed under ECO require work to correct issues causing damp and mould. Some 6% of external installations and 2% of internal ones put occupants in immediate danger from poor ventilation, risking carbon monoxide poisoning and electrical faults that could cause fires.

Government has added red tape and slowed delivery without fixing quality problems.”

Anna Moore (pictured), co-founder and CEO of retrofit specialist Domna, says the problems extend beyond ECO. “The contractors delivering ECO are the same firms now delivering Warm Homes. Government has added red tape and slowed delivery without fixing quality problems.”

She adds that easy fixes include redirecting resources to site-based inspection teams and enforcing existing PAS2035 standards that separate assessment roles from delivery.

An absolute disgrace

And the HomeOwners Alliance has described the findings as “an absolute disgrace” and warned the issue could extend far beyond the installations examined so far.

A spokesperson for the organisation says: “Once again, public money has been used to fund cowboy builders, leaving homeowners with damp, mouldy and unsafe homes. The National Audit Office report lays bare how weak oversight and a broken consumer protection system have failed the very people these schemes were meant to help.”

The Alliance fears this is only the tip of the iceberg, as external and internal wall insulation account for just 8% of installations under these schemes. The organisation has called twice for ministers to examine spray foam insulation, but says it has received no meaningful response.