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Calls for mandatory licensing scheme for builders

Calls for mandatory licensing scheme for builders
Emma Lunn
Written By:
Posted:
07/05/2025
Updated:
07/05/2025

Almost half (47%) of UK adults wrongly believe builders are licensed, while two-thirds (65%) wrongly expect builders to have insurance to cover accidental damage.

The figures come from a survey conducted by the HomeOwners Alliance (HOA) and the Federation of Master Builders (FMB).

The research uncovered widespread misconceptions among the UK public regarding how builders are regulated and licensed. Nearly half of UK adults and 39% of UK homeowners believe builders are legally licensed, when in fact no licensing requirements currently exist, nor is there any requirement for builders to register with a Government or regulatory body.

The HOA found that younger homeowners (aged 18-34) are more likely to believe that builders must be registered with a Government agency (66% versus 32% of homeowners). Female homeowners are more likely to expect UK builders to have a licence to trade (46%) than male homeowners (32%).

No legal safeguards

The lack of regulation means there are no legal safeguards to ensure builders meet basic standards.

The HOA and FMB are urgently calling for a mandatory licensing scheme for builders, arguing that the absence of regulation leaves homeowners vulnerable to rogue traders and unqualified operators.

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The lack of regulation and licensing mean that unlike electricians or gas engineers, anyone can legally set up as a builder without demonstrating any proof of competence or training.

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

The HOA said the regime should include competence assessments, background checks on trading and financial history, a dispute resolution scheme and a mechanism for licences to be revoked if standards are not met.

The survey found that the public clearly supports reform, with eight in 10 homeowners backing licensing to introduce basic standards and protections.

‘Devastating impact’

As part of the campaign for licensing, victims of cowboy builders have shared the devastating impact rogue traders have had on their lives. Victims have described harrowing emotional and financial consequences.

Some homeowners describe feeling exhausted, broken, and isolated, often too ashamed to tell family or friends. The HOA said rogue traders often target the elderly or vulnerable, using urgent repair scams to extract money.

Paula Higgins, CEO of the HOA, said: “We have supported FMB’s campaign for the licensing of builders for over 10 years and it’s high time the Government acted. I would hate to think how many people have fallen victim to rogue traders or poor-quality work, how many millions of pounds of households’ money has been lost and victims left to clear up the mess over the last decade alone.

“When it comes to appointing a builder, homeowners shouldn’t have to cross their fingers and hope that their builder is one of the good ones. Government needs to protect homeowners through licensing.”

Brian Berry, chief executive of the FMB, said: “Homeowners having building work done to their homes are at risk unless they carry out background checks. The survey finding that nearly half of homeowners mistakenly believe builders have a licence to trade is very concerning, as they could be putting themselves at risk. Building work is often a complex and, at times, a dangerous job and needs to be underpinned by standards and legal accountability.

“Successive Governments have failed to act to protect homeowners from rogue builders – an unwanted part [of] the industry that is so prolific that [it] has generated its own TV shows. We can’t allow just anyone to call themselves a builder anymore. The Government must step up and bring in a licensing scheme that puts quality, safety, and accountability first.”

Related: Spring Statement 2025: Planning reforms will lead to ’40-year housebuilding high’