Government to launch crackdown on rogue builders

The prime minister said rogue builders gave "decent, hardworking" traders a bad name [file pic]

A couple looks at plans with a builder in their home, which is under renovation

People carrying out home renovations will gain greater protections against "cowboy builders" through a new database of trusted traders and a payment system offering more safeguards, the government has said.

Traders signing up to the scheme launching next month will need to demonstrate certain standards of customer service, transparency and dispute resolution.

Prime Minister Andy Burnham said unscrupulous tradespeople "leave families with months of stress" as well as unfinished work.

The National Federation of Builders said the changes would not stop rogue operators while the Tories suggested there would be added paperwork for firms already operating legitimately.

Citizens Advice has said home renovations are one of its biggest sources of consumer complaints.

The government said more than a quarter of people who carried out home improvements in the past 18 months have experienced problems, such as builders disappearing after upfront payments were made.

It cited a survey carried out for the Competition and Markets Authority suggesting customers lost more £10bn in 2024 on home and garden maintenance services due to losses, overpriced costs or unfair practices by traders.

BBC News has previously reported on "bait-and-switch" locksmith scams, where customers were given an initial cheap quote before hidden charges and unnecessary work were added.

Under the new traders' scheme, customers' money will be held in an account and released in parts after certain milestones in projects are completed.

The National Federation of Builders (NFB) told BBC Breakfast there are already schemes in place to find trustworthy builders.

Adas Rico Wojtulewicz-Richmond, the NFB's director of policy, said: "Is this scheme going to stop bad actors operating and ripping people off? I don't think it will."

He said a better approach would be for every project to have a "passport" which records all the work done.

"It protects consumers because you can find out which companies are doing a poor job, and it brings up the industry standards," he said.

The Chartered Trading Standards Institute (CTSI) said the new scheme would clamp down on rogue traders "who take the money and run", but urged the government to go further to protect vulnerable people from shoddy works and repairs.

John Herriman, CTSI's chief executive, said government funding schemes like the Warm Homes Plan could create opportunities for fraudulent traders.

"CTSI would therefore urge the government to see this as a great first step and to introduce a mandatory licence for tradespeople working in the home repair and maintenance sector, which would make it simpler and cheaper for enforcement agencies – including Trading Standards – to prosecute fraudulent tradespeople," he said.