The Prime Minister has vowed to “put cowboy builders out of business” in a crackdown on rogue traders.
Andy Burnham has unveiled new measures aimed at preventing homeowners being ripped off while renovating their homes, as well as taking separate steps to target bailiffs who treat people in debt unfairly.
A formal scheme of approved dealers will be launched to help customers identify trustworthy builders who meet high standards, as well as a new system to protect people’s money during construction projects with payments linked directly to key project milestones.
The government says many people are falling victim to dodgy traders.
It says more than one in four UK adults who have made home improvements in the past 18 months have experienced problems.
These include projects being abandoned midway, seniors being pressured to overpay for shoddy work, and construction workers disappearing on holiday after receiving advance payments with little or no work completed.
As a result, more than one in three of those who encountered problems faced additional costs, amounting to an average of £750 each.
In 2024, people lost more than £10.3 billion in home and garden maintenance costs due to losses, overcharges or unfair practices.
The Furniture and Home Improvement Ombudsman (FHIO) will deliver the approved code system in partnership with the Chartered Trading Standards Institute.
“Cowboy builders don’t just rip people off,” Burnham says.
“They leave families experiencing months of stress, disruption of unfinished business, and this terrible feeling of exploitation.
“Not only that, they give the vast majority of respectable, hard-working traders a bad reputation.
“So we’re putting the cowboys out of business.
“These changes mean you will now have the option to ensure your money is kept safe and released little by little as the work gets done.”
Business Secretary Jonathan Reynolds adds: “Your home is the biggest investment you make.
“Although improving the situation can be stressful, we help families avoid it becoming a nightmare.”
FHIO Deputy Head of the Ombudsman, Judith Turner, says: “We are pleased that the government is recognizing the implementation of this law.
“It is vital in building trust in the sector and helping consumers identify trusted traders who are committed to increasing consumer confidence and resolving disputes fairly and impartially through an accredited and accredited ombudsman system.”
