New protections planned for homeowners hiring builders for renovations

Homeowners planning renovations are set to receive greater protection against rogue builders under new measures designed to make hiring tradespeople safer.

The government plans to introduce a database of trusted traders alongside a payment system intended to reduce the risk of customers losing large sums of money when building projects go wrong.

Tradespeople wanting to participate will be expected to meet standards covering areas including customer service, transparency and the handling of disputes.

One of the most significant changes concerns how homeowners pay for building work.

Under the proposed system, customers will be able to place money into a protected account rather than handing the full amount directly to a contractor.

Payments can then be released in stages as agreed milestones on a renovation project are completed.

The approach could provide greater protection against one of the most serious problems encountered by homeowners – paying substantial sums upfront before a builder disappears or leaves work unfinished.

Consumer organisations have repeatedly highlighted home improvements as an area generating significant numbers of complaints.

Research cited by Citizens Advice suggests more than a quarter of people who undertook home improvements during an 18-month period experienced problems.

Separate research conducted for the Competition and Markets Authority estimated consumers suffered more than £10 billion in financial detriment during 2024 from problems involving home and garden maintenance services.

The government's proposals are intended to make it easier for consumers to identify reputable businesses while giving legitimate builders a way of demonstrating that they meet recognised standards.

Prime Minister Andy Burnham said rogue traders can leave families dealing with significant financial losses, stress and unfinished homes.

However, representatives of the construction industry have questioned whether the proposals will stop the worst offenders.

The National Federation of Builders has warned that dishonest traders could simply remain outside the scheme while legitimate companies face additional administration.

Its director of policy, Adas Rico Wojtulewicz-Richmond, has argued that a project passport could provide another approach.

Such a system could create a record of work carried out on individual properties, helping homeowners and future buyers identify who completed particular projects and potentially making it easier to identify businesses responsible for poor work.

The Chartered Trading Standards Institute has welcomed greater consumer protection but believes stronger regulation should go further.

It has called for mandatory licensing of tradespeople working in home repairs and maintenance, arguing that this would give authorities greater ability to act against rogue operators.

The proposals will be particularly relevant to homeowners undertaking expensive projects such as extensions, structural alterations, kitchens, bathrooms and whole-house refurbishments, where deposits and staged payments can amount to tens of thousands of pounds.

Consumers should still carry out their own checks before appointing a contractor.

Obtaining several written quotations, checking previous work and references, agreeing the scope and payment schedule in writing and avoiding unnecessarily large upfront payments can reduce the likelihood of disputes.

Homeowners should also check whether planning permission, building regulations approval or specialist certification will be required for their particular project.

The government has separately announced plans to strengthen regulation of private bailiffs in England and Wales, including professional standards and an independent process for complaints.

Further details of the consumer protection measures are expected as the new trusted trader arrangements are introduced.

Open article on Cheshire Today