What new research tells us about rogue traders, and why it matters for good builders
At the Federation of Master Builders, we represent thousands of small building companies like yours, that take pride in doing the job properly. Run by builders who are committed to professional standards and quality workmanship. Yet too often, they tell us they’re losing business to rogue traders who operate without basic checks or accountability.
Our new research, which we’ve carried out in partnership with the HomeOwners Alliance, highlights how widespread this problem is, how it affects homeowners, and why the current system is failing both consumers and reputable builders.
The findings also reinforce why we’re continuing to push for mandatory licensing of building companies.
At a glance: what the research found
- Many homeowners only carry out limited checks before hiring a builder, increasing the risk of rogue traders.
- Most are carrying out essential work, not luxury projects, including safety‑critical repairs.
- Younger homeowners are more likely to rely on online reviews and comparison sites than formal credentials.
- Nearly a third of homeowners have delayed work because they could not find a builder they trust.
- Over 80 percent say they would pay more to hire a licensed builder.
Homeowners are taking big financial risks on essential work
The research challenges the idea that domestic building work is mainly discretionary. In reality, most projects are driven by necessity.
Safety risk: Among homeowners who had hired a builder, common reasons included upgrading electrics, plumbing or heating, fixing structural issues and dealing with disrepair. These are works that directly affect safety and habitability.
Financial risk: Many households are stretching themselves financially to fund building work. Nearly two thirds used savings or investments, while around a quarter relied on borrowing or credit. For mortgage holders, more than a third increased their borrowing further to get work done.
When things go wrong, the consequences can be severe. This is one reason why poor quality building work damages trust across the whole sector.
Weak checks leave the door open to rogue traders
While recommendations still play a major role when homeowners choose a builder, any formal checks when choosing a builder are often limited. Fewer than one in five homeowners say they check trading history or financial stability.
Your business’s digital presence matters
Homeowners under 35 are far more likely to rely on online reviews, comparison platforms and websites.
This creates an uneven playing field. Rogue traders who present well online can win work easily, while reputable builders investing in standards do not always get the recognition they deserve.
Lack of trust is holding back work for good builders
One of the most striking findings is that mistrust is actively suppressing demand.
Almost a third of homeowners who considered building work in the past five years decided not to go ahead because they could not find a builder they trusted. That is work not happening, households delaying essential repairs, and reputable firms missing out.
For an industry already facing skills shortages and rising costs, this loss of confidence is holding everyone back.
Homeowners support licensing and are willing to pay for it
The research shows strong public backing for licensing. More than two thirds of homeowners say mandatory licensing would increase their confidence in builders. More than four in five say they would be willing to pay more to hire a licensed builder.
The features homeowners value most include:
- Mandatory insurance or financial protection
- A public register of licensed builders
- Background checks on trading history and finances
These are not radical ideas. For many FMB members, they reflect existing good practice. Licensing would simply ensure that everyone operating in the market is held to the same baseline standard.
Why this matters for reputable builders
Rogue traders do more than harm individual homeowners. They undermine trust in the entire sector and make it harder for professional builders to compete on quality alone.
This research strengthens the case for licensing as a practical way to protect consumers, support reputable firms and rebuild confidence in small building companies.
That is why the FMB will continue to use this evidence to make the case to government for a licence to build.
