The introduction of a mandatory licensing system for domestic builders is moving closer to Parliament following an official launch at the House of Lords yesterday (20 May).
The Federation of Master Builders’ (FMB) model for licensing domestic building companies aims to protect consumers and root out rogue traders by providing a strong framework requiring building companies to obtain and retain a licence.
The model follows the decade-long Licence to Build campaign, which is supported by the public and industry bodies.
Under the FMB model, licensing would be mandatory for all paid-for domestic construction work by contractors. Firms would apply for a licence through an approved scheme provider and a single UK licensing authority would act as the main point of contact.
The scheme would be funded by industry fees tiered according to firm size and risk level to ensure proportionality and accessibility. Initial and renewal checks are built into the system.
After the first and third years, further checks would be based on risk factors or if there are significant management changes.
Failure to meet standards would lead to appeals, sanctions or loss of licence.
To obtain and retain a licence, contractors must meet and maintain standards in health and safety, competence (including technical skills, management and regulatory understanding), quality management, dispute resolution and customer service.
The FMB estimates that each licence would cost a firm £172, before accounting for 28% inflation between 2018 and February 2025.
Closer to Parliament
Despite cross-party recognition of the problem and supportive debate in Parliament, a private members’ bill by Mark Garnier MP calling for the introduction of a licensing system for domestic builders faced significant obstacles.
The Domestic Building Works (Consumer Protection) Bill was first introduced in the House of Commons on 21 June 2021. However, it struggled to progress due to limited parliamentary time and a lack of official support.
The Conservative MP reintroduced a similar version of the bill in the 2024-25 session, with its first reading last year and its second reading scheduled for 13 June 2025.
Garnier told the FMB’s podcast he has “more hope” of the bill passing under the new government.
Missing link to drive up standards
Almost half of homeowners wrongly believe builders are licensed, when in fact no licensing requirements currently exist, according to new research by the FMB and campaign group the HomeOwners Alliance.
The report also found that two-thirds (65%) of those surveyed wrongly expect builders to have insurance to cover accidental damage, when in reality they don’t, and almost a third (32%) think they must register with a government or regulatory body, even when such requirements don’t exist.
FMB CEO, Brian Berry, said: “For over a decade, the FMB has campaigned for a mandatory licensing system of building companies because we have seen first-hand the devastating impact rogue builders can have on innocent homeowners. Too many families have suffered financial loss, emotional distress, and even unsafe living conditions at the hands of unqualified and unscrupulous operators.
“Our licensing model is the missing link to drive up standards, protect homeowners, and ensure that only competent, qualified building firms are allowed to build and improve our homes. This is about restoring trust and professionalism to our industry, supporting reputable builders, and finally giving consumers the confidence and protection they deserve.
“We sincerely hope that the government will put protecting the consumer at the top of its agenda. Now is the time for action to deliver the change the public and industry need.”
