Sign in

Cowboy builders: what the 2026 crackdown means for you

By Alex Williams, director of Ty Parc Construction, a building contractor in Newport, South Wales · Last reviewed 21 October 2026

In August 2026 the government announced two measures against cowboy builders: an Approved Code that builders can sign up to, and Trusted Payments, an app that holds a homeowner’s money and releases it in stages as work is done. Both are voluntary — a builder doesn’t have to join. The Approved Code is being developed by the Furniture and Home Improvement Ombudsman and the Chartered Trading Standards Institute and is due to be fully in place by December 2026.

Why it’s happening

Government figures say more than one in four UK adults who had home improvement work done in the previous 18 months had problems, and more than one in three of those faced extra costs, losing £750 on average. The Federation of Master Builders welcomed the move but called it “just another voluntary programme without regulation behind it” and wants compulsory licensing.

The Approved Code

A voluntary code builders sign up to, showing they meet standards for customer service, transparency and dispute resolution. The first businesses are joining from autumn 2026, and it should be fully live by December 2026.

Tip: ask a builder whether they’ve signed up, and check on the scheme’s site once it’s live.

Trusted Payments, in plain English

Trusted Payments is a private app named in the announcement that went live in September 2026. From the HomeOwners Alliance guide (October 2026):

  • 10% of the job price is held from the start until completion.
  • You approve each stage payment in the app and the builder is paid the next day.
  • A one-off project fee of £45 with a TrustMark-registered builder, or £79 otherwise.
  • 1% per payment, capped at £4.
  • Builders pay a one-off £35 + VAT.
  • You have 14 days to confirm completion or raise defects.

Check current fees on the Trusted Payments site before you sign up.

What Trusted Payments doesn’t do

It moves and protects money; it isn’t a record of what was agreed along the way. Most money disputes are about extras that were agreed on site and remembered differently, and about what the final figure should be. Whatever you use to pay, agree the price, each extra and each payment in writing as the job goes.

Warning signs of a cowboy builder

  • Asks for most of the money upfront.
  • No written quote, or a vague one.
  • Cash only and no invoices.
  • Can start tomorrow and pressures you to decide now.
  • No landline or address, or the company doesn’t appear on Companies House (if they say they’re a limited company).
  • Can’t show insurance.
  • No references or past jobs you can see.
  • Says you don’t need building regulations or planning when you do.

How to protect yourself

  • Get at least three written quotes.
  • Check the company on Companies House and ask for public liability insurance details.
  • Ask for references and look at a finished job.
  • Use a written contract — see our guide to JCT, FMB and simple building contracts.
  • Pay in stages against finished work, with a deposit of no more than 10–15% — see our guide to stage payments.
  • Agree every extra in writing before it’s done.
  • Keep photos and messages.

Builders: showing you’re not a cowboy

Put your company details and insurance on every quote, use a written contract, take a sensible deposit, agree extras in writing, and send a clear final account. That’s what clients will be looking for. If a dispute does start, see what to do in a dispute over money.

Sources