FMB renews call for builder licensing to protect against rogue traders

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Young homeowners are at increased risk of hiring rogue builders, according to research by the FMB
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The Federation of Master Builders (FMB) has stated that younger homeowners face an increased risk of hiring cowboys due to online reviews

New research from the Federation of Master Builders (FMB), carried out with the Home Owners Alliance (HOA), highlights how changing ways of hiring contractors may be increasing exposure to rogue builders, and adds weight to industry calls for mandatory builder licensing.

The research highlights how increased use of online reviews, comparison platforms, and online branding instead of more traditional vetting checks allows cowboy builders to be more deceptive.

Research highlights risks posed by unregulated builders

The research suggests that a digital-first approach when hiring builders is becoming increasingly popular as more young people (under 35) become homeowners.

33% of homeowners under 35 rely on online reviews when choosing a builder, while just 16% of over-55s say the same. 24% of young homeowners also use comparison platforms when seeking a tradie.

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Just 8% of under-35s will check whether a builder is a member of a trade body, as opposed to 21% of over-55s, and 15% will verify formal qualifications such as Gas Safe registration against 27% of over-55s.

20% of younger homeowners are also twice as likely to judge a builder on their website and branding, as opposed to 9% of older homeowners.

Brian Berry, chief executive of the Federation of Master Builders, said: “Young homeowners are hiring builders the same way they would order a takeaway – scrolling through reviews and choosing whoever has five stars. But online reviews can be faked, comparison sites are not regulated, and neither are small building companies, which can make it easier for rogue or cowboy builders to appear more credible than they are.

“That’s why traditional vetting methods matter. Choosing a builder through a trade body like the FMB gives homeowners extra reassurance that the company has been properly checked and independently vetted, helping to reduce the risk of encountering cowboy traders.”

Making a stronger case for builder licensing

The FMB have long been calling for mandatory licensing to be introduced for builders in order to combat rogue builders.

Regarding potential licensing and the Single Construction Regulator, Brian Berry said: “Creating a Single Construction Regulator is an opportunity to fix long standing weaknesses in how the construction industry is regulated. The landscape has vast gaps of no regulation for those working in the industry, currently filled by halfway house measures in an attempt to boost consumer trust. We support the Government’s focus on safety, trust, and higher standards, but these outcomes will not be achieved unless there is clear accountability and a level playing field for responsible builders.”

“Good builders are being undercut by rogue traders who operate with little oversight and leave consumers facing serious financial and emotional harm. A mandatory licensing system, which the Regulator can be expanded in scope to accommodate, would set a clear baseline for competence and professionalism, make enforcement more effective, and give homeowners confidence about who they are letting into their homes. Our response shows how licensing can be designed to work for SMEs, while targeting poor practice and raising standards across the industry.”

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