Cowboy builders face a new crackdown—but loopholes remain

New trust badge and safer payments promise homeowner protection

The Government is launching an Approved Code for builders and a milestone-linked payment system after more than one in four adults reported problems with recent home improvements. The measures could protect customers and help honest tradespeople stand out—but because the builders’ code remains voluntary, the worst offenders could simply refuse to join.

CRACKDOWN ON ROGUE BUILDERS

The government has launched one of the most significant crackdowns on rogue builders and tradespeople in decades. The move seems to in response to soaring complaints, unfinished projects, and billions lost by households, with the Prime Minister saying the goal is to “put the cowboys out of business.”

What exactly is changing and will it protect families and will it benefit reputable small and micro firms currently struggling with the cost of doing business?

What’s in the pipeline

A Government‑Backed Approved Code for Builders (launching September)

Builders and tradespeople will be able to join a new Approved Code covering:

• customer service

• transparency

• dispute resolution

This gives homeowners a way to identify reputable traders and gives good builders a badge of trust. The onus is on builders and tradespeople to sign up if they want the badge and customers to check before they book a builder. However, the code will be voluntary, not compulsory and as with many voluntary codes before it, not everyone who signs up will be as reputable as they claim to be unless there’s a lot of checks to go through, it can be difficult to raise awareness of the code among builders and the homeowners, and if enforcement isn’t robust enough to remove the bad guys it could fall flat. If it works well and the firms with the code logo are good at what they do, this should be to the benefit of good small and micro businesses. However there’s still nothing to stop rogue builders operating.

A New Milestone‑Based Payment System

More than a quarter of people have had problems with home improvement work, and the average extra cost of those problems is £750. A new payment system will protect customers from handing over large sums up front. Money will be put into the payment pot and released only when agreed project milestones are completed.

The Government says this will stop builders disappearing in the middle of the project and will protect families from losing thousands of pounds.

Consumer harm

The scale of the harm that consumers experience at the hands of rogue builders is huge with a quarter of adults reporting problems with home renovations and £10.3bn lost in poor home and garden maintenance work in 2024.

Builders disappearing in the middle of the project is one of the main complaints made to the Citizens Advice consumer helpline.

The government says cowboy builders cause months of stress over unfinished work as well as the financial loss, and that rogue builders do monumental damage to the reputations of  honest tradespeople.

The political message is fix everyday problems, protect families and support reputable trades.

Weaknesses

Industry bodies warn the crackdown may fall flat because anyone can still call themselves a builder and rogue traders will just avoid joining the scheme. Voluntary codes have historically failed to weed out the bad and the ugly. The Federation of Master Builders says compulsory licensing is the only real solution.

London Construction Magazine analysis shows that the measures will improve protection only where homeowners choose to use them, but they don’t mean that non‑members are trading illegally. It also doesn’t mean firms or tradespeople who don’t sign up to the Code aren’t good at what they do. It’s possible that it will take some time for firms, tradespeople and customers to become aware that the Code and the payment system exist.

Good builders benefit

Reputable tradespeople get a trust badge, clearer standards, protection from being undercut by rogue operators and, if it works, more confident customers.

Admin burden may increase

Some trade bodies warn the new payment system must not create unreasonable admin or cashflow delays for small contractors because they are already struggling to get paid by customers and drowning in admin, all of which means many are struggling to survive.

Competition becomes fairer if customers use the scheme

If homeowners adopt milestone payments and the Approved Code, rogue traders lose out unless they improve their game. However if customers don’t use the new systems, the market is still uneven.

One step forward

The government’s crackdown is a major step forward, giving families new tools to avoid being ripped off and helping reputable builders stand out. However, the fact that the measures are voluntary means:

• good builders will join

• rogue builders will avoid scrutiny

• the worst offenders can still trade legally

• and customers will still end up with bad work and chasing repayments.

To fix the market, the UK would need compulsory licensing, minimum competence standards, and mandatory registration which is exactly what industry bodies want to see.

For now, the crackdown may reduce harm, boost trust, and support honest tradespeople, but it won’t eliminate cowboy builders entirely. Everyone still needs to be on their guard.

Crackdown on Rogue Bailiffs (linked to the same consumer protection agenda)

It’s just worth mentioning that there’s a separate measure in the pipeline. The government is simultaneously tightening rules on private bailiffs, and they will have to be accredited and subject to independent oversight. This forms part of the same “everyday fixes” agenda targeting unfair practices. Enforcement Agents and the firms they work with will have to be accreditation by the Enforcement Conduct Board.