Stop Cowboy Builders: Why Licensing and Consumer Protection Reforms are Needed in the RMI Sector

Send us a topic important to you.There is an urgent need to protect consumers from rogue builders, particularly those operating in the Repair, Maintenance, and Improvement (RMI) sector. We explore how "dodgy builders" ruin lives, causing homeowners significant financial distress, with losses estimated at £14.3 billion over five years. The key learning objective is understanding why current routes for redress—like civil courts and police intervention—are often ineffective because they treat apparent fraud as a costly, complex civil matter. We discuss proposed solutions, including mandatory licensing, an ombudsman scheme, and compensation funds, aimed at restoring accountability and consumer confidence.Key TakeawaysRogue or "cowboy" builders operating in the RMI sector have cost homeowners an astonishing estimated £14.3 billion over five years.The fear of being ripped off is so widespread that one in three homeowners are put off having work done, equating to a possible £10 billion of lost economic activity.When homeowners seek redress, the court system is often too slow, complex, and expensive, especially for claims between the small claims limit and £1 million. Police frequently classify these issues as civil matters, even in cases involving significant financial loss and alleged fraud.A major issue is that rogue builders often repeatedly liquidate their companies (a practice known as phoenixing) to avoid paying debts or court judgments, only to restart a new business immediately and continue ripping off consumers.The entire home improvement process is laden with consumer protection (architects, surveyors, solicitors, lenders) right up until the money is handed over to the builder, who often has absolutely no regulation, qualifications, or protection mechanism for consumers.A compulsory licensing scheme for SME building firms is strongly supported by the industry itself, with 77% of SME builders and 78% of consumers agreeing to the proposal.Source: Rogue BuildersVolume 775: debated on Thursday 13 November 2025Follow and subscribe to 'The Bench Report' on Apple, Spotify, and YouTube for new episodes daily: thebenchreport.co.ukSubscribe to our Substack Shape our next episode! Get in touch with an issue important to you - Producer Tom will grab another coffee and start the research!Email us: [email protected] us on YouTube,  X, Bluesky, Facebook, Instagram and TikTok! @benchreportUKSupport us for bonus and extended episodes + more.No outside chatter: source material only taken from Hansard and the Parliament UK website.  Contains Parliamentary information repurposed under the Open Parliament Licence v3.0....