Rogue builders targeted in new government crackdown

Housebuilders face tighter scrutiny as the government launches a crackdown on ‘cowboy builders’ and moves to close loopholes used by rogue operators.

The measures are designed to improve standards across residential construction and give consumers greater protection when commissioning building and home improvement work.

The Chartered Trading Standards Institute (CTSI) has backed the move, warning that fraudulent and substandard building work continues to cause significant financial losses for consumers.

More than one in four UK adults who commissioned home improvements during the past 18 months experienced problems. These included abandoned projects, poor workmanship, excessive charges and builders taking upfront payments without completing the agreed work.

Consumers lost more than £10.3bn through home and garden maintenance work in 2024 as a result of losses, excessive charges or unfair practices, according to figures cited by CTSI.

The Department for Business, Skills, Innovation and Trade (DBIST) has announced measures intended to make it easier for consumers to identify competent traders through an approved code.

The government is also supporting a Trusted Payment Scheme designed to protect money paid for building work. Under the scheme, funds would be released as agreed stages of a project are completed.

CTSI and the Approved Code Scheme are working with the Furniture and Home Improvement Ombudsman (FHIO) to develop an approved code for the home improvement sector. FHIO plans to launch it this autumn.

The Approved Code Scheme provides a framework intended to set trading standards for businesses participating in individual sector codes and give consumers greater confidence when selecting traders.

The government is also reviewing the wider consumer protection and Trading Standards system, with CTSI contributing to the review.

John Herriman, chief executive at CTSI, said: “CTSI welcomes the government’s announcement that it intends to clamp down on fraudulent tradespeople. Such criminals deliver substandard work that costs consumers – including vulnerable victims – significant amounts of money to rectify the damage they cause to their homes, or who take the money and run.

“Whilst this announcement is a welcome step forward, CTSI is concerned that funding initiatives like the Warm Homes Plan provides an opportunity for fraudulent trades to capitalise on rising demand for home improvements. CTSI would therefore urge the Government to see this as a great first step and to introduce a mandatory licence for tradespeople working in the home repair and maintenance sector, which would make it simpler and cheaper for enforcement agencies – including Trading Standards – to prosecute fraudulent tradespeople.”

Tim Day, CTSI lead officer for cams and doorstep crime, commented: “It’s very welcome news that a scheme that includes compulsory redress will protect consumers in a market where detriment is currently far too high, but this must be a first-step in regulating the market. It’s far too easy for unqualified and fraudulent actors to enter the market, and impossible for consumers to be able to identify the legitimate traders from the criminals so designing-out fraud and criminality via a compulsory registration and licensing scheme for trades operating in or on consumers’ homes remains essential.”

Leader Online found that potential cowboy builder scams have almost doubled since 2022, while the cost of putting work right hit £2.3m in 2025 – the highest since 2022. The total repair bill could be as much as £189.2m, however.

Home maintenance and improvement complaints across England and Wales: 

The report analysing Citizens Advice home maintenance and improvement complaints found that cases flagged as potential scams almost doubled from 8% to 14% between 2022 and 2025, with early 2026 data showing sustained levels. Potential scam cases refer to Citizens Advice complaints tagged with scam markers.

Cost to fix or complete cowboy builder jobs across England and Wales:

A separate FOI to Citizens Advice also revealed that homeowners spent £2.33m to put issues right in 2025 alone, which is the highest figure since 2022.

However, only 0.8% of complainants provided a detriment cost across the 4.5-year period. Applying the median reported detriment cost (£1,000) across all 189,224 complaints in this period would suggest the true bill could be as high as £189.2 million. While only an estimate, recorded detriment costs may only capture a small proportion of the real figure.

David Turner, head of product at home improvement specialist Leader Online, added: “The financial and emotional impact of a cowboy builder cannot be underestimated. We welcome this news and hope that fewer people will find themselves victims of scammers and rogue builders, which, on average, leaves Britain’s £1,000 out of pocket according to our research. However, many individual cases are significantly higher.

“It is important to note that these scam figures do not mean every complaint flagged as a potential scam was confirmed as fraud, but they do show why it is important to check the details before a project starts. The cost to fix poor or incomplete work is significant for most people, especially when grappling with wider financial pressures.

“A good tradesperson should be clear about what is included in the quote, which materials will be used, how long the work should take, and when payments are due.”