'Cowboy builders' targeted in new government clampdown
Summary
The government is launching a new scheme to protect people doing home renovations from dishonest builders, often called "cowboy builders." This plan includes a database of trusted traders and a payment system that releases money only after certain work is done. Alongside this, new rules will regulate private bailiffs to prevent unfair treatment of people in debt.Key Facts
- The new scheme starts next month and requires traders to show good customer service and fair dispute handling.
- More than 25% of people doing home improvements recently have faced problems like builders disappearing after upfront payments.
- Customers lost over £10 billion in 2024 due to bad practices by builders and traders, according to a government survey.
- Payments for home work will be held in an account and released step-by-step as the job progresses.
- The National Federation of Builders says the scheme may not stop dishonest builders, and suggests a work "passport" to track builders’ performance.
- Some politicians warn the scheme could add extra paperwork for honest businesses without stopping fraudsters.
- The government will introduce rules for private bailiffs to protect debtors from intimidation and unfair payment demands.
- An independent complaints system will be available for people dealing with private bailiffs.
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