Homeowners lose billions to unlicensed builders

The Federation of Master Builders (FMB) is continuing to urge the government to introduce mandatory licensing across all domestic building work following a recent survey.

The research reveals 37 per cent of adults in Britain have hired a builder who turned out to be unreliable or unqualified, with homeowners losing £14.3bn to cowboys in the past five years alone.

This data also comes after the Energy Security and Net Zero Parliamentary Committee backed a licensing scheme for retrofit installers to protect consumers against poor work.

The survey paints a picture of a building system under pressure:

*44 per cent believe there are fewer builders available now than five years ago

*85 per cent say the cost of hiring a builder has gone up

*37 per cent of homeowners have delayed planned renovations due to builder costs or availability

*34 per cent even resorted to doing the work themselves

*16 per cent gave up on their projects entirely

When people do manage to hire a builder, they often pay the price in other ways:

*35 per cent were hit with unexpected extra costs

*22 per cent saw their jobs left unfinished

*33 per cent received poor quality work

*15 per cent of UK adults have lost money in the past five years, averaging £1,759 per person

The FMB is campaigning for the introduction of mandatory licensing for building companies, as there is currently no scheme in place to protect consumers – meaning anyone can trade without checks on their skills or experience.

Many homeowners wrongly assume safeguards already exist: nearly half believe builders must be licensed, and 81 per cent support mandatory licensing of builders.

Brian Berry, chief executive of the FMB, said licensing would raise standards, rebuild trust, and unlock renovation work.

“This research lays bare the scale of damage caused by poor standards and a lack of accountability in the building industry – from botched jobs and lost savings to deepening public mistrust.

“We urgently need a licensing system for domestic building companies that ensures only competent builders are allowed to trade.

“Licensing would protect consumers while also supporting reputable builders by ensuring a level playing field.

“Licensing building companies would raise standards across the building industry and give homeowners the confidence to carry out home improvements.

“The public has had enough of cowboy builders – it’s time for change.”