Green Deal Finance Company to Accept £34m Bailout

Investors in the Green Deal Finance Company, which provides loans for the troubled Green Deal energy insulation programme, are set to back the Government’s £34million bailout of the firm, but regard it as a short-term fix. GDFC turned to Energy Secretary Ed Davey for funding after the state-backed Green Investment Bank refused to continue lending to it beyond the end of the year. GDFC needs to sign 60,000 households a year to break even, but in the past 18 months has signed only 5,922. Read more on the Daily Mail website.

Green Deal Change Unlikely To Boost Take Up, Says FMB

The Federation of Master Builders (FMB) says changes to the Green Deal loan system the company providing funds for the programme are little more than tinkering at the edges and are unlikely to boost take-up.  The Green Deal Finance Company (GDFC) said last week that it would stop including early repayment charges in Green Deal plans immediately, and called on providers to “look favourably” on waiving any such charges that may have been included in plans that have already been purchased. The GDFC says it has listened to feedback and believes removing the charges will simplify the system. Read more on the Housing Excellence website.

'Green Deal' Energy Efficiency Scheme Too ‘Complex’

An ambitious Government scheme to improve the energy efficiency of millions of homes is so “complex” it is likely to be discouraging the public from signing up, the head of the company funding the project has admitted.  Mark Bayley, the chief executive of the Green Deal Finance Company, admitted that the complexity of financing the Green Deal could be putting off a lot of homeowners from taking part. This can involve a number of “home visits”, multiple forms to fill in as well as delays in credit checking. “There are still too many complexities facing the consumer,” he said. Read more on the Independent website.

Green Deal Credit Checks Could Stymie Demand

Industry experts have expressed fears moves by the Green Deal Finance Company (GDFC) to credit check customers could increase costs and suppress demand for the government’s flagship scheme.  It has never been clear whether credit checks of customers would be required under the Green Deal because of the unique way that the schemes loans are tied to the property not the occupier.  However, the Office of Fair Trading has advised the GDFC it will need to conduct them to comply with financial regulations.  Read more on the Building website.