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Cowboy builders cost the UK economy £10bn per year

The UK economy is missing out on £10 billion each year because home owners are so fearful of hiring a cowboy builder, they simply don’t commission building work, according to research by the Federation of Master Builders (FMB).

Key results from the FMB’s research into consumer confidence in the UK’s builders include:

  • The UK economy is missing out on £10 billion of activity per year because of anxiety over cowboy builders
  • One third (32%) of home owners are put off doing major home improvement works requiring a builder because they fear hiring a dodgy builder
  • If all home owners had full confidence in the building industry, they would typically spend an average of £40,000 on major home improvement projects over the next five years

Brian Berry, Chief Executive of the FMB, said “A third of home owners are so anxious about the possibility of choosing a bad builder, they don’t commission any building work whatsoever. This means that the UK economy could be missing out on £10 billion of activity every year. Indeed, the FMB’s latest research shows that on average, your typical home owner would spend £40,000 on major home improvement projects over the next five years if they could be guaranteed a positive experience. If we were able to unlock this pent-up demand from fearful consumers, the benefit to jobs and growth would be enormous. Last year the UK experienced its slowest growth since 2012 with a rise in GDP of just 1.8 per cent. With Brexit just around the corner, it’s therefore vital that the Government pulls as many leavers as possible to turbo-charge the economy and protect it from any potential economic wobbles.”

“In the longer term, we need to end the cowboy builders’ reign of terror so we can give all home owners the confidence they need to invest their cash in building work. The Government should consider introducing some form of mandatory licensing system for domestic builders so that consumers know that all building firms have a base level of skill, competence and professionalism. Unlike in Australia and Canada, in this country anyone can be a builder and that’s why there is a significant minority of rogue traders out there giving the whole construction industry a bad name. We’re exploring mandatory licensing with industry and Government but in the meantime, our advice to home owners who are looking for a builder is to ask for a recommendation from family or friends. If they can’t help, consumers should approach a professional trade association like the Federation of Master Builders who can put them in touch with a vetted and inspected building firm.”

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Nearly 80% of builders call for licensing scheme to crush the cowboys

Almost 80% of builders are calling for more regulation in the construction industry to end the tyranny of cowboy builders, according to the Federation of Master Builders (FMB).

The FMB is calling on the Government to introduce a licensing scheme in construction as part of its Agenda ‘Raising the bar: A post-Grenfell agenda for quality and professionalism in construction’.

Brian Berry, Chief Executive of the FMB, said “Until we introduce a licensing scheme in construction, cowboy builders will continue to run rampant in our industry. Licensing would ensure a minimum level of competence and professionalism and give consumers greater assurance when hiring a builder. Unlike in the US and Germany, anyone can be a builder in the UK. What this means is that we have allowed a significant minority of cowboy builders to give the whole construction industry a bad name. Our latest research shows that almost 80 per cent of our members are so fed up with rogue builders tarnishing their reputation, they are in favour of introducing a licencing scheme. Our research among consumers also shows that one third of home owners in the UK are so anxious about hiring a dodgy builder that they don’t commission any building work whatsoever. What’s more, the average home owner would spend around £40,000 on major home improvement projects over the next five years if they could be guaranteed a positive experience with their builder. It’s time to release this pent up demand for building work through a licensing scheme consumers can trust.”

“Even more important than the economic benefits that would come from increasing quality and professionalism in the industry are the safety benefits. The Grenfell Tower tragedy reminded us of the price paid when things go wrong in the construction industry. Grenfell raised serious questions about standards, regulation and compliance within the construction sector and although we await the results of the Hackitt Review, we want to start a wider conversation about how we can drive up quality and professionalism in construction. As well as calling on the Government to introduce a licensing scheme for builders, the FMB’s new Agenda calls for mandatory warranties for building projects that require building control sign-off to protect consumers further. The FMB would also like to work with industry to develop a ‘general builder’ qualification which would seek to recognise the highest standards of professionalism in the industry.”

Jason Ryan, a home owner living in West London, was a victim of a rogue building firm earlier this year. Ryan commented on the introduction of a licencing scheme in construction: “At the start of this year, builders were carrying out essential improvements to my home in West London. The whole process turned out to be an absolute nightmare. Our builder would often turn up late, or not at all, and communication was always poor. We would try to call him and often not hear back. The work they eventually carried out was sub-standard – for example, the grooves in the door frames were hacked into and were left uneven and messy. I think all builders should be required to have a licence to protect people like me from having these nightmarish experiences. It was very stressful and has put me off hiring a builder in the future unless I absolutely have to.”

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