The cavity wall insulation scandal: can you claim compensation?

Across the UK, the cavity wall insulation scandal is about poor or unsuitable insulation work leaving some homes with damp, mould, failed guarantees and disputed responsibility. The rules differ between England and Wales, Scotland, and Northern Ireland, especially on compensation time limits, EPC records and sale disclosure.

What is the cavity wall insulation scandal?

The cavity wall insulation scandal is the fallout from badly installed or unsuitable cavity wall insulation, including grant-funded work, where homeowners say insulation trapped moisture, caused damp or mould, and left them fighting installers, insurers or guarantee bodies. The clearest legal example is Atta v HDI Global, where the High Court recorded that “The judge found that for a variety of reasons this work was performed negligently and in breach of contractual and tortious duties of care.” A BBC investigation put the scale much wider, reporting that “cavity-wall insulation fitted under government-backed green energy schemes could have failed in hundreds of thousands of homes because it was not installed properly.” In Scotland, some disputes remain unresolved rather than proven either way: CIGA has said one homeowner’s damp and mould were “unrelated to the installation or extraction of cavity wall insulation,” while residents disputed that conclusion.

Can you claim compensation for cavity wall insulation?

There is no statutory compensation scheme anywhere in the UK for cavity wall insulation: your practical routes are a private claim against the installer, a negligence claim where fault and loss can be proved, or the industry CIGA guarantee if it applies. In England and Wales, a simple contract claim normally has a six-year limit because the Limitation Act 1980 says “An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.” In Scotland, the equivalent prescription period is five years: the 1973 Act refers to an obligation subsisting “for a continuous period of five years.” CIGA is not a government compensation scheme; its guarantee says “The maximum value of rectification work is currently £20,000,” and CIGA arbitration through CEDR costs “£100 plus VAT” to apply. If negligence is proved, a court can award removal costs where removal was reasonable and necessary.

How can you prove a property has cavity wall insulation?

You can prove a property has cavity wall insulation by checking the EPC record, searching for a CIGA guarantee, or commissioning a borescope inspection if records are missing or inconclusive. For England, Wales and Northern Ireland, the government EPC service is explicitly for “a property in England, Wales or Northern Ireland,” and an EPC often records whether cavity wall insulation is present. Scotland uses its own separate EPC system, the Scottish Energy Performance Certificate Register, whose site says “Welcome to the Scottish Energy Performance Certificate Register.” A CIGA guarantee search can also evidence that cavity wall insulation was installed: CIGA says “We simply need the property address and postcode to search our Guarantee database.” Where paperwork does not settle it, a borescope inspection is the most direct proof because it visually checks the cavity; one trade source prices that at “between £100 and £250” for a definitive visual result.

Is the government checking insulation installed under grant schemes?

Yes, government-linked checks are taking place in Great Britain, and DESNZ’s audit found cavity wall insulation and other “additional measures” had major performance issues in 23% of checked installations, with 1% posing immediate safety risks. The National Audit Office summary says “DESNZ found 212 of the 910 additional measures installed alongside external and internal wall insulation had major issues that will affect the performance of the additional measure (23%), and six (1%) had severe issues, posing immediate health and safety risks.” That figure is for additional measures, including cavity wall insulation, and should not be confused with the separate external-wall-insulation figure: DESNZ reported “The combined rate of Category 1 and Major non‑compliance for EWI is 98%.” The audit scope is Great Britain only, because the DESNZ page says it “Applies to England, Scotland and Wales.” Separately, TrustMark says it is delivering free household audits “at the request of the Government,” but that TrustMark programme is for external wall insulation, not cavity wall insulation.

Can you sell a house with cavity wall insulation?

Yes, you can sell a house with cavity wall insulation anywhere in the UK, but what you must disclose depends on the nation and whether you answer buyer enquiries. No UK rule prohibits sale just because a home has cavity wall insulation. In England and Wales, the starting point is caveat emptor: a High Court judgment states that a seller “is under no obligation to answer” buyer enquiries and “incurs no liability if he declines to do so,” although false answers can create misrepresentation risk. Scotland is different because a seller must supply a Home Report Property Questionnaire before marketing; the Scottish regulations require “a property questionnaire in, or as nearly as may be in, the form set out in Schedule 2.” Northern Ireland has its own misrepresentation legislation rather than the Misrepresentation Act 1967 for England and Wales. A transferable CIGA guarantee can help a sale because CIGA says “The guarantee remains valid for subsequent owners or occupiers of the property,” but the claimed 5–10% price premium is only an unverified market claim.

Last reviewed August 2026.

Sources

• Atta v HDI Global Specialty SE [2023] EWHC 2028 — “The judge found that for a variety of reasons this work was performed negligently and in breach of contractual and tortious duties of care.” Source
• BBC News investigation on cavity wall insulation failures — “The BBC can reveal that cavity-wall insulation fitted under government-backed green energy schemes could have failed in hundreds of thousands of homes because it was not installed properly.” Source
• BBC News Scotland report on CIGA dispute — “All issues, deterioration, and mould spore development within Mr Paterson's property were initially and subsequently confirmed to be unrelated to the installation or extraction of cavity wall insulation.” Source
• Limitation Act 1980 s.5 — “An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.” Source
• Prescription and Limitation (Scotland) Act 1973 s.6 — “If, after the appropriate date, an obligation to which this section applies has subsisted for a continuous period of five years—” Source
• CIGA guarantee holders page — “The maximum value of rectification work is currently £20,000.” Source
• CIGA independent arbitration dispute process — “In order to refer the matter you must request an Application form from CIGA and submit the completed form to CEDR together with a fee £100 plus VAT and supporting documents including:” Source
• Atta v HDI Global Specialty SE [2023] EWHC 2028 on removal costs — “That would have been regarded as both reasonable and necessary since, unless it was removed, further damage would have continued unabated and the Claimant was entitled to have the Property restored to his predamaged state.” Source
• GOV.UK Find an energy certificate — “Find an energy certificate for a property in England, Wales or Northern Ireland.” Source
• Scottish Energy Performance Certificate Register — “Welcome to the Scottish Energy Performance Certificate Register.” Source
• CIGA consumer concerns page — “We simply need the property address and postcode to search our Guarantee database.” Source
• Axiom Eco Homes guide to checking cavity wall insulation — “If these steps give no clear answer, a professional borescope camera inspection costing between £100 and £250 will give a definitive visual result.” Source
• National Audit Office summary of energy efficiency installations — “DESNZ found 212 of the 910 additional measures installed alongside external and internal wall insulation had major issues that will affect the performance of the additional measure (23%), and six (1%) had severe issues, posing immediate health and safety risks.” Source
• DESNZ solid wall insulation audit results — “The combined rate of Category 1 and Major non‑compliance for EWI is 98%, with a 95% confidence interval of (96%, 99%).” Source
• DESNZ solid wall insulation audit results scope — “Applies to England, Scotland and Wales” Source
• TrustMark Find and Fix booklet — “TrustMark is working at the request of the Government to deliver free audits to households with external wall insulation installed.” Source
• Thorp v Abbotts [2015] EWHC 2142 (Ch) — “The buyer may make enquiries of the seller as well, but the seller is under no obligation to answer them and incurs no liability if he declines to do so (though of course a purchaser may equally decline to proceed).” Source
• Housing (Scotland) Act 2006 (Prescribed Documents) Regulations 2008 — “(b)a property questionnaire in, or as nearly as may be in, the form set out in Schedule 2.” Source
• Misrepresentation Act (Northern Ireland) 1967 — “An Act to amend the law relating to innocent misrepresentations and to amend sections 11 and 35 of the Sale of Goods Act 1893.” Source
• CIGA guarantee page — “The guarantee remains valid for subsequent owners or occupiers of the property.” Source