The Government has announced new measures aimed at tackling rogue traders and improving consumer protection in the home improvement sector.
The announcement has attracted considerable media coverage, but there is still more detail to come about how the proposals will work in practice and what they could mean for building companies.
We have been seeking clarification from those involved and engaging with relevant stakeholders. Here’s what we know so far.
What has the Government announced?
Based on the information available so far, the proposals are not a licensing or a registration scheme for building companies. They are not led by the Government.
Instead, they centre on two voluntary, privately run initiatives:
- A Trusted Payments app, designed to help consumers and tradespeople manage home improvement projects and stage payments.
- A voluntary code scheme linked to the Furniture & Home Improvement Ombudsman (FHIO).
At this stage, both initiatives appear to be voluntary rather than mandatory for building companies.
What could the changes mean for builders?
There is still more detail needed before we can say exactly how the proposals will affect small to medium sized (SME) builders.
In particular, we want to understand how the Trusted Payments app and voluntary code will work in practice, what will be expected of building companies that choose to use them, and how the proposals will fit alongside existing industry schemes.
For now, there is no indication that builders will be required to sign up to either initiative.
We will provide further information once the detail becomes clearer.
Our position on raising standards in the building industry
We support measures that can help raise standards, tackle rogue traders and improve public trust in reputable building companies.
However, our long-standing position remains that a mandatory licensing scheme for building companies is the most effective way to raise standards across the industry, create a level playing field and provide robust protection for consumers.
We have campaigned for a licensing system through our Licence to Build campaign because, unlike voluntary schemes, licensing would establish a minimum standard that building companies must all meet in order to operate.
What happens next?
We will continue to engage with Government, the FHIO and other stakeholders as further information is published.
Our priority is to understand what these proposals will mean in practice for our members, their clients and the wider building industry.
We’ll update this page as more detail becomes available.
