Editor's note: This brief was summarised by The Property AI Newsroom from a report by Guardian Property. Read the original article for full details.
Government clampdown on rogue builders: trusted trader register and escrow payment app launch
A register of trusted traders is scheduled to go live this month as part of a government crackdown on rogue builders, one of the first promises made by Andy Burnham as prime minister. The government is also backing a Trusted Payment app endorsed by the Chartered Trading Standards Institute, whose director James Walker says it will create a "fair contract between trade and consumer".
How the Trusted Payment app works
Under the app's system, milestone payments are delayed by 24 hours, giving consumers time to cancel if they feel under pressure. Payments for completed work are held in escrow by the Dispute Resolution Ombudsman until the job is finished to both parties' satisfaction. Projects costing more than £2,500 are covered by a two-year warranty, and traders who fail to follow ombudsman decisions can be banned from the app.
Walker says the aim is to create a "trusted network for consumers" while helping reputable tradespeople win more business. "We are not going to stop a rogue trader going out … but we are providing a trusted mechanism so you know if you use this process you are protected," he says.
The scale of the problem
The clampdown follows figures from Citizens Advice, which said in July that 4.8 million homeowners had a problem with a home repair job in the previous 18 months, ranging from unfinished or unsafe work to disputes with traders. About 1.7 million had to pay more to fix earlier work or had been overcharged, losing an average of £750 each, and for one in 10 the extra cost topped £5,000.
The Guardian's report illustrates the risks through the case of Sheri Ingram, whose builder, hired to renovate her then-boyfriend's home in the south Wales valleys, removed floorboards, joists, the staircase, walls and the ceiling before disappearing after about six weeks. The couple handed over about £14,000 against an original budget of around £8,000. The builder, Lee Slocombe of Swansea, was jailed for six years in February after defrauding nine victims of £400,000.
What this means for agents and clerks
For UK letting agents and inventory clerks, the new register and payment protections may become relevant when commissioning or advising on maintenance and refurbishment work, offering a way to verify traders and hold payments in escrow until work is completed to both parties' satisfaction.
Source: Guardian Property