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Government launches trusted-trader register and escrow system to curb rogue builders

A new government scheme will create a vetted trader database and an escrow-style payment system to protect homeowners from dishonest builders.

A government initiative aims to shield homeowners from "cowboy builders" by establishing a database of vetted traders and an escrow-type payment system that releases funds only after agreed project stages are completed. Traders enrolling from next month must demonstrate defined standards of customer service, transparency and dispute resolution. Prime Minister Andy Burnham warned that dishonest tradespeople leave families under prolonged stress and with unfinished work.

The National Federation of Builders questioned the scheme's effectiveness, suggesting a project "passport" would be more useful, while opposition figures cautioned the measures could burden compliant firms with extra paperwork. In parallel, the government will tighten regulation of private bailiffs in England and Wales, providing an independent complaints route and higher professional standards. These steps respond to data showing over a quarter of recent home-improvement customers faced problems and a CMA-linked survey indicating £10bn losses in 2024 from poor practices.

Why it matters

Homeowners could face less financial risk and unfinished work from dishonest contractors.

In this story

cowboy builderstrusted traders databasepayment escrowrogue tradespeoplebailiff regulationconsumer protectionhome renovation complaintsdispute resolution
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