Builder licensing: why homeowners are losing confidence in hiring tradespeople

One of the key concerns for any homebuyer, and even a current homeowner, is what happens when a serious issue surfaces that needs to be fixed?

For a prospective homebuyer, you can get a level of understanding of the extent of any serious building issues by taking out a suitable building survey. With Surveyor Local, you know that you'll get an experienced surveyor who will run down all the problems that might exist in a home. From this, you can assess the likely costs of any necessary remedial work, and use that to inform your decision as to what you do next (that is, accept the cost, negotiate with the seller, or walk away from the transaction).

If you are a current homeowner, you could also decide to take a survey (it's not just for purchasing homes; you can order a survey at any time to give the property an expert once-over), or you might take the plunge and contact a builder or other tradesman to carry out the necessary work for you.

But one of the things that you need before starting any building work is a level of confidence in the appointed firm that they will do a good job. According to research performed by the Federation of Master Builders (FMB) and the HomeOwners Alliance (HOA), as many as one in five homeowners are putting off hiring a builder for a domestic building project, the decision being caused by a lack of confidence in the builder.

While this has a significant impact on the general economy as expensive projects are abandoned before they start, the research also highlights that 82% of homeowners would be willing to pay a bit more if the builder was fully licensed to perform the building task. In addition, just over two-thirds of those who responded indicated that mandatory licensing of builders would increase their confidence to hire them to complete the job in hand.

The problem as it stands is that homeowners are responsible for tracking down the builder's capabilities without any protection in the event of problems surfacing after the project is completed. This situation inevitably leads to the possibility of hiring rogue builders doing a poor job with no recourse for recompense and resolving problems created by the hired builder.

According to the research, the majority of building work requirements are not what has been termed as "vanity projects". Indeed, the majority of the work is driven by urgency:

• 27% of respondents were upgrading electrics, plumbing, or heating systems to keep the home safe and habitable
• 24% required structural problems to be fixed, or issues created by disrepair
• 15% planned to add essential rooms such as bedrooms and bathrooms

Brian Berry, Chief Executive of the FMB, said of the findings:

"These findings are a wake-up call.

Homeowners are telling us loud and clear: they want builder licensing, they need builder licensing, and they're prepared to pay for it.

Right now, families are putting off vital safety work like fixing faulty electrics, repairing structural damage, upgrading unsafe plumbing because they can't find a builder they trust.

When 82% of homeowners say they'd pay more to hire a licensed builder, the government has a clear mandate to act.

A mandatory licensing scheme would give families the protection they want — and protect the reputation of reputable builders."

Paula Higgins, Chief Executive and Founder of the HOA, added:

"Homeowners shouldn't have to gamble when improving or repairing their homes, yet that's exactly what the current system forces them to do.

Our research shows people are holding back from vital work not because they don't want to invest, but because they don't feel protected.

A licensing scheme would give homeowners clarity and confidence about who they're hiring, while helping raise standards across the industry.

Until that happens, too many will continue to delay essential improvements, to the detriment of their homes and the wider economy."

There are growing calls for change across the industry, with both the FMB and HOA pushing for a mandatory licensing framework that would give homeowners greater protection and raise standards among building firms. We'll be keeping an eye on developments and reporting back as the picture becomes clearer.

If you need to understand the condition and structural integrity of a home you are planning to buy, book a survey with Surveyor Local. We connect you to experienced chartered surveyors across the country, all of whom are members of RICS, ensuring the survey you receive is always professionally delivered.

Call for a no-obligation quote, or use our quick online quote generator to get an instant figure sent straight to your inbox.