UK launches trusted trader database and bailiff rules to curb consumer losses

The UK government will launch a new database of trusted traders and a milestone-based payment system next month to protect homeowners from fraudulent builders. The initiative aims to tackle widespread issues in the domestic renovation sector, where customers frequently face unfinished work and abandoned projects.

The economic scale of the problem is substantial. A Competition and Markets Authority survey revealed that consumers lost more than £10bn in 2024 across home and garden maintenance services due to overpricing and unfair practices. Furthermore, over a quarter of individuals who undertook home improvements in the past 18 months reported significant problems.

Under the new framework, participating traders must demonstrate specific standards in transparency, dispute resolution, and customer service. Customer funds will be held in a secure account and released incrementally as project milestones are achieved, rather than paid upfront.

Prime Minister Andy Burnham argued that unscrupulous tradespeople cause immense stress for families and tarnish the reputation of legitimate workers. Business Secretary Jonathan Reynolds added that the measures are designed to restore consumer confidence and provide greater financial security for households spending on property improvements.

However, industry representatives argue the voluntary nature of the scheme limits its effectiveness. Adas Rico Wojtulewicz-Richmond, director of policy at the National Federation of Builders, doubted the initiative would stop bad actors and advocated for a mandatory project passport to track work history and enforce standards.

Political opponents echoed these concerns regarding compliance burdens. Shadow business secretary Andrew Griffith warned the policy risks piling paperwork onto legitimate firms, suggesting the government should instead focus on tougher sentences and stronger law enforcement. Liberal Democrat spokesperson Sarah Olney called the voluntary code half-baked, noting that rogue operators will simply refuse to participate.

Alongside the construction reforms, the government announced plans to regulate private bailiffs in England and Wales to protect debtors from aggressive repayment tactics. The changes introduce professional standards and an independent complaints process for enforcement actions.

Courts minister Sarah Sackman emphasized that enforcement agents must maintain high standards alongside their responsibilities. Yet, the broader challenge of regulatory enforcement remains evident, as a recent Freedom of Information request by Which? highlighted that severe understaffing in Trading Standards teams continues to facilitate scams and the sale of dangerous products.