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Cowboy builders could be costing residents £14.3 billion a year

Posted: Wednesday, July 16th, 2025

A recent study by the Federation of Master Builders (FMB) has revealed that a staggering 37% of adults in Britain have hired a builder who turned out to be unreliable or unqualified, with homeowners losing £14.3bn to cowboy builders in the past five years alone.  

This data comes after the Energy Security and Net Zero Parliamentary Committee backed a licensing scheme for retrofit installers to protect consumers against dodgy work.

It also follows the launch of the FMB’s Licence to Build report in the House of Lords in May this year, which highlighted a potential system for licensing builders. 

The survey paints a picture of a building system under pressure: 

  • 44% believe there are fewer builders available now than five years ago 
  • 85% say the cost of hiring a builder has gone up, with nearly half of those saying it’s risen “a lot” 
  • 37% of homeowners have delayed planned renovations due to builder costs or availability 
  • 34% even resorted to doing the work themselves 
  • 16% gave up on their projects entirely 

When people do manage to hire a builder, they often pay the price in other ways: 

  • 35% were hit with unexpected extra costs 
  • 22% saw their jobs left unfinished 
  • 33% received poor quality work 
  • 15% of UK adults have lost money in the past 5 years alone, averaging £1,759 per person 

The FMB is campaigning to make licensing compulsory for building companies, as there is currently no scheme in place to protect consumers, meaning anyone can trade without checks on their skills or experience.

Many homeowners wrongly assume safeguards already exist: nearly half believe builders must be licensed, and 81% support mandatory licensing of builders. Licensing would raise standards, rebuild trust, and unlock renovation work. 

The FMB urges the Government to introduce mandatory licensing across all domestic building work. As part of the FMB’s licensing campaign, numerous victims have come forward to share their experiences with rogue builders, highlighting the urgent need for stronger industry protections. 

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