Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
The Prime Minister has announced a clampdown on rogue builders, unveiling new measures aimed at protecting homeowners from being exploited during home renovations. The government will introduce an official approved traders scheme and a new payment system linked to project milestones.
The government states that too many people are falling victim to unscrupulous tradespeople, with more than one in four UK adults who undertook home improvements in the past 18 months experiencing problems. Reported issues include projects abandoned halfway through, elderly people being pressured into overpaying for poor-quality work, and builders disappearing after taking upfront payments.
More than one in three people who encountered problems faced extra costs, averaging £750 each. In 2024, losses, overpriced costs, or unfair practices in home and garden maintenance amounted to over £10.3 billion.
The new approved traders scheme will be delivered by the Furniture and Home Improvement Ombudsman (FHIO) in partnership with the Chartered Trading Standards Institute. The scheme aims to help customers identify trustworthy builders who meet high standards. Additionally, the new payment system will protect consumers by ensuring payments are released only as key project milestones are completed.
These measures are intended to build trust in the sector and help consumers identify reputable traders, while also providing a mechanism for resolving disputes fairly and impartially through an established ombudsman scheme.
Source: Mortgage Strategy