Andy Burnham’s new plan to crack down on cowboy builders sounds good on paper, but I’m not convinced. The plan includes a government-backed standards scheme to help homeowners find reputable businesses, alongside a payment app called Trusted Payments. The app links payments to stages of the job and offers extra protection. It’s voluntary, so builders are not being forced to sign up.
I can see how that might help a vulnerable homeowner, especially an elderly person who doesn’t know what to look out for. Nobody wants to see someone’s savings disappear along with the bloke who promised them a new kitchen.
But I’m against unnecessary government regulation. Leave good builders and property investors to run their businesses. When politicians announce that they’re going to “help,” I want to know what that means for the people actually doing the work.
Builders have wages to pay, materials to order, and subcontractors to keep on site. If a payment process makes them wait longer for money they’ve earned, that wait has a cost. And I would expect that cost to find its way into your quote.
They might not call it “interest,” but you could still end up paying for it.
Trusted Payments says its service aims to reduce payment delays. If it delivers that, good. My concern is any extra waiting, fees, or administration that turns a straightforward job into a more expensive one.
An extra few thousand pounds can be the difference between an investor taking on a run-down house and walking away. If fewer projects stack up, fewer homes get renovated. A property could sit empty for longer while everyone talks about solving the housing crisis.
That is the unintended consequence I worry about. Something introduced to protect homeowners could end up slowing down the work needed to get homes finished.
I also have questions about how well this would work for investment properties. Full refurbishments can involve several trades, changing specifications, and tight deadlines. I’d want to see how the system handles that before relying on it for an investment project.
What frustrates me is that the basics of protecting yourself already exist. I teach thousands of clients at the Samuel Leeds Academy, including successful property investors, how to work with builders properly and reduce the risk of being scammed. That starts before you hand over a penny.
Look at a builder’s previous work. Speak to past customers. Check their reviews and business details. Get several quotes and compare what is actually included. A cheap price and a convincing chat are not enough.
Then get everything in writing. A signed contract, a clear schedule of works, and agreed payment stages. If a builder refuses to put the agreement in writing, I don’t use them.
I don’t hand over half the money at the start and hope for the best. Depending on the job and materials needed, a starting payment of 5% to 10% may be appropriate. On a £30,000 refurbishment, that could mean £3,000 to begin, followed by payments when agreed stages are completed.
Keep on top of the work. Ask for weekly updates and photographs. Before releasing the next payment, visit the property or send someone competent whom you trust. You need to know that the work you’re paying for has actually been done properly.
And agree from the start that the final balance stays back until the job and snagging are finished. Those last few jobs are part of what you’re paying for. Don’t release the final money just because someone promises to pop back next week.
The builder gets paid fairly as the job progresses and still has an incentive to finish it properly. Once an agreed stage is completed and checked, pay promptly. Good builders deserve customers who hold up their end of the agreement too.
I already teach staged payments. The point is to match the money to the work, inspect it, and keep both sides accountable. You don’t need to wait for a government announcement to start doing that.
If homeowners want the extra protection of a payment service, that’s their choice. But I don’t want a voluntary service turning into another hoop that every good builder and investor has to jump through.
We don’t need more red tape. We need people to learn how to work with builders properly.