License to Build: Stop Cowboy Builders

Too many homeowners are being let down by unqualified or cowboy builders. This has been going on too long. We're calling for a mandatory licensing scheme to protect consumers and raise standards in the building industry.

Thousands of UK homeowners fall victim to rogue builders every year, with contractors delivering poor work, abandoning projects, or disappearing with deposits.

Cowboy builders have cost British homeowners an estimated £14.3 billion over the past five years alone, research by the Federation of Master Builders found.

Unlike electricians or gas engineers, builders don’t need to prove their competence or training to trade.

Today, anyone – regardless of training, skill, or experience – can legally carry out construction work. No tests. No proof of competence. Just tools in hand and access to your home.

Sadly, homeowners often find out too late that protections they assumed were in place simply don’t exist and they’re left to deal with the financial and emotional cost.

Our research with the Federation of Master Builders shows that nearly half of UK adults wrongly believe builders are legally licensed, and 65% of UK homeowners expect builders to have insurance to cover damage – but they often don’t.

This means rogue traders can cause financial and emotional devastation to homeowners, with little accountability.

Homeowners at risk

The risks of this to homeowners are clear:

• Abuse: Rogue builders can exploit this lack of oversight to rip off unsuspecting homeowners. 
• Financial & emotional cost: Homeowners who fall victim to these rogue builders can face losing huge amounts of money, suffer emotional strain and be left with unfinished home projects or worse, unsafe homes.
• Weak consumer protection: Trading Standards and legal options are slow, costly, or often ineffective. And if the builder has gone bust your chances of redress may be non-existent.

 Why we need change now

For over a decade, the HomeOwners Alliance has offered advice on how to find good builders, how to check a tradesman you want to use is legitimate and have partnered with the Federation of Master Builders (FMB) to help you find quality contractors.

The FMB is the UK’s largest trade association for the construction industry. We’ve partnered with them because they check company history, financial records and proof of insurance. All their members’ work will also have been checked on site by an independent inspector to make sure it is completed to a high standard.

But the stories of poor industry practice continue. We are regularly contacted by unhappy homeowners struggling with what to do when things have gone wrong. CEO Paula Higgins regularly appears on TV and radio to explain homeowners’ rights and ways for victims to seek justice.

But our work isn’t enough to plaster over the cracks of an industry in need of reform. So we are calling for strict regulation to protect homeowners and restore trust in the building trade.

Campaign for mandatory licensing of Builders

As a result of our research with the FMB, we are jointly calling for a mandatory licensing scheme for builders.

 What we’re asking for

• Mandatory licensing: The licensing regime should include competence assessments, and background checks on trading and financial history of any builders undertaking major work on properties. They should be required to have professional indemnity insurance to cover negligent work.
• Robust enforcement and tiered sanctions should be put in place to act as a strong deterrent against trading unlicensed.
• A publicly-accessible online database of licensed traders should be established.

• A dispute resolution scheme and a mechanism for licences to be revoked if standards are not met.
• Stronger penalties: Criminal charges for builders and banning them from setting up other companies if found guilty of malpractice.

The licensing of builders will professionalise the construction sector, improve its reputation and enhance consumer protection by removing unqualified and rogue traders from the industry. 

Widespread support for change

Our campaign has strong backing: 8 in 10 homeowners support builder licensing, and 86% of FMB members want it too. The victims below share powerful stories of how rogue builders have devastated their lives, especially targeting the vulnerable.

Case studies: Home owners’ experiences at the hands of rogue builders

• Gerard, Ealing: “For eight years, we’ve faced flooding, illegal builds, and endless stress from an unregulated developer. Despite local authority involvement, there’s been no real resolution.”
• Mary, Southampton: “After my MS diagnosis, I trusted a builder with my life savings. Instead of helping, they left my home damaged and my finances ruined. Regulation is desperately needed.”
• Michelle, Clacton-on-Sea: “Grieving and vulnerable, I trusted a builder who left my home condemned and unliveable. I’ve spent my life savings twice over to fix the mess.”
• Rosemary & Phil, Surrey: “We paid upfront for patio doors and windows. The work was dangerously poor, and the trader vanished, setting up under a new name. We were left exposed and out of pocket.”

Have you been affected? Sharing your story helps us fight for reform. Add a comment below or email us at hello@hoa.org.uk