A new Approved Code scheme is being launched by the Government this month in a bid to crackdown on rogue traders and cowboy builders.
Designed to offer homeowners confidence that their chosen tradesperson meets higher standards, the scheme will also offer a level of financial protection with a Trusted Payments app.
But with over £10.3 billion lost by homeowners on home and garden maintenance costs in 2024 due to losses, overpriced costs or unfair practices, do the plans go far enough?
What is the Approved Code scheme?
According to the government, the Approved Code scheme will require businesses to sign up to the scheme. In doing so, they will be demonstrating that they, "meet higher standards of customer service, transparency and dispute resolution."
It is hoped this will help protect the many homeowners who fall foul to cowboy builders or tradespeople who either fail to finish projects, complete them to a very low standard, or demand more cash for the work they've done.
Alongside the Approved Code scheme, there is also a Trusted Payments app being launched, which will help ensure payments are released according to major milestones in a project, therefore preventing builders or tradespeople leaving before the work is finished.
Both measures have been developed by the Trusted Payments and the Furniture and Home Improvement Ombudsman (FHIO) respectively.
Launching the scheme, Prime Minister Andy Burnham said: "Cowboy builders don’t just rip people off. They leave families with months of stress, the disruption of unfinished work, and that horrible feeling of being taken advantage of. Not only that, but they give the vast majority of decent, hardworking tradespeople a bad name.
So we’re putting the cowboys out of business. These changes mean you’ll now have the option to make sure your money is held safely and released bit by bit as the work gets done."
How big is the problem of cowboy builders?
Based on evidence from the Citizens Advice 'Built to Fail' report, more than one in four UK adults who carried out home improvements work in the past 18 months experienced problems – whether it was projects abandoned halfway through, undue pressure on elderly people to overpay for shoddy work or even builders disappearing on holiday with upfront payments with little to no work completed.
More than 1 in 3 of these also faced extra costs, losing an average of £750 of their hard-earned cash. Delays and mounting costs can also cause severe stress which destroys lives, making it clear that the problem is one that must be tackled head on.
What else is in place to protect homeowners?
Although this is a government-backed scheme to protect homeowners, there are already a number of options in place for those looking to hire trades to work on their home improvement projects.
One such example is the vetting and payment scheme operated by the Elite Construction Network.
Their 'Vault' houses funds until work is complete and fulfilled to the highest standard, and every registered tradesperson in their network must pass a vetting process before they are approved for membership.
This includes checking their company registration, insurances, health and safety documentation, industry experience and quality control measures. References are also checked directly with past clients rather than relying on online review platforms.
Dan Hensher, co-founder of the Elite Construction Network, said: "We built the Elite Construction Network because homeowners had no reliable way of knowing who they could trust. Vetting has to happen before a trade gets in front of a customer, not after something goes wrong. The government's announcement is a welcome step, and it confirms what we have believed from the start: the industry needs proper standards, properly checked."
As well as homeowners, vetting schemes also help those builders and tradespeople who are perfectly legitimate, do the job well and don't engage in shoddy practises.
"The vast majority of tradespeople do things properly, and for years they have been undercut by those who do not. The Elite Construction Network gives decent trades a way to prove their standards and gives homeowners the confidence to hire them. A crackdown on cowboy builders is good news for every honest business in this industry," agrees Callum Tharratt, co-founder.
Other networks such the recently launched findmyjus.com operate similar vetting schemes for any member offering services of any kind, and online search tools such as Checkatrade, Mybuilder.com and Federation of Master Builders are all common starting places for finding reputable workers.
Having a strong building contract in place with your builder is of course also recommended on larger projects such as self-builds or building an extension.
When will the schemes be fully operational?
According to the government website, the Trusted Payments app will go live from the first week of September, "with over 100,000 traders able to access before the end of September. The Approved Code will be live with first retailers by the end of September and fully live by December 2026."
Deputy Chief Ombudsman, Furniture and Home Improvement Ombudsman, Judith Turner said: "We are pleased that government is recognising the implementation of this code. It is vital in building trust in the sector and helping consumers to identify trusted traders who are committed to increasing consumer confidence and resolving disputes fairly and impartially via an established and approved Ombudsman scheme."
