The government has announced new measures aimed at tackling rogue and unreliable builders, with a new scheme designed to help customers identify reputable tradespeople before starting work.
The initiative, being introduced this month, will allow participating businesses to demonstrate that they meet specific standards around customer service, transparency and handling disputes.
For landlords, the scheme could provide an additional layer of protection when carrying out property repairs, renovations and improvement projects.
New Protection for Building Payments
One of the changes will introduce a payment system designed to reduce the risk of customers losing large sums of money before work has been completed.
Under the proposed approach, payments can be connected to key stages of a building project, meaning money is released as agreed milestones are reached rather than being handed over entirely at the beginning.
The government says the measures are intended to support reputable tradespeople while making it more difficult for rogue operators to compete by taking advantage of customers.
The need for greater protection has been highlighted by figures from the government, which suggest that more than one in four UK adults who carried out home improvement work during the previous 18 months experienced problems.
Issues reported included unfinished projects, builders abandoning jobs and vulnerable customers being pressured into paying excessive amounts for poor-quality work.
There have also been cases where builders have taken upfront payments and then disappeared without completing much, if any, of the agreed work.
Billions Lost Through Poor Building Work
The financial impact of poor practices can also be significant.
The government says more than a third of people who encountered problems with home improvement work were hit by additional costs, losing an average of around £750.
Across 2024, consumers are estimated to have lost more than £10.3 billion through losses, inflated prices and unfair practices connected with home and garden maintenance.
Beyond the financial losses, the government has highlighted the wider stress caused by delayed or abandoned building work. Projects left unfinished can cause prolonged disruption for households and create additional costs for people trying to put problems right.
Government Targets Rogue Builders
Prime Minister Andy Burnham said cowboy builders can cause more than financial damage, pointing to the disruption and stress that unfinished projects can create for families.
He also argued that rogue operators can damage the reputation of the wider building industry, despite the majority of tradespeople providing a professional service.
The government says the new arrangements will give customers greater choice over how their money is protected during building projects.
Rather than paying everything upfront, customers will have the option of having funds held securely and released progressively as agreed work is completed.
What It Means for Landlords
The changes could be particularly relevant to landlords who regularly rely on builders and tradespeople to maintain rental properties.
Property repairs, refurbishment work and improvements can involve significant upfront costs, particularly where a landlord is renovating a property between tenancies.
Being able to identify traders that meet recognised standards could make it easier for landlords to assess potential contractors before committing to work.
The milestone-based payment system could also reduce the financial risk associated with paying large deposits or upfront amounts to unfamiliar builders.
However, landlords should still carry out their own checks before appointing a contractor, including reviewing previous work, references, insurance and written quotations.
Wider Consumer Protection Review
The government has also announced longer-term plans to look at the wider consumer protection system.
The review will consider how organisations including Citizens Advice and Trading Standards work alongside regulators, enforcement agencies and redress schemes.
The aim is to make the system easier for consumers to use, improve how quickly complaints are dealt with and identify potential harm at an earlier stage.
For landlords and homeowners, the changes could provide greater protection when dealing with building contractors, while reputable tradespeople may benefit from a clearer way to demonstrate that they meet expected standards.
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