Government launches trusted builder scheme to protect landlords
A new government-backed scheme has been introduced to help landlords and homeowners identify reliable builders and avoid rogue traders. The scheme includes higher standards and payment protections linked to project milestones.
The government announced a clampdown on cowboy builders starting this month, aiming to reduce the widespread issues of abandoned projects, overcharging, and poor workmanship that affect many property owners. The scheme, supported by an Approved Code, allows businesses to demonstrate compliance with enhanced customer service, transparency, and dispute resolution standards. Payments for building work will be linked to key milestones to protect consumers’ money throughout the project.
This initiative is part of Prime Minister Andy Burnham’s efforts to improve trust in the building trade and protect consumers, including private landlords who frequently commission maintenance and refurbishment work. The government also plans a wider overhaul of consumer protection involving regulators and enforcement bodies to make redress faster and more effective.
Details of the trusted builder scheme and payment safeguards
The new scheme requires builders and tradespeople to sign up to an Approved Code of Practice, which sets out higher standards for customer service and transparency. Participating businesses can demonstrate their commitment to fair dealing and dispute resolution, helping landlords and homeowners distinguish trustworthy operators from rogue traders.
A key feature is a payment protection system that ties payments to the completion of agreed project milestones. This reduces the risk of upfront payments being lost if a builder abandons the job or delivers substandard work. By releasing funds in stages, landlords can better manage cash flow and hold builders accountable for progress.
According to a statement from 10 Downing Street, over one in four UK adults who undertook home improvements in the past 18 months experienced problems such as projects being abandoned or excessive charges. The average financial loss reported was £750 per person, with total losses exceeding £10.3 billion in 2024 due to overpriced costs and unfair practices. The government highlighted the significant stress and disruption caused by these issues.
Context for landlords and the private rented sector
Private landlords routinely engage builders for repairs, renovations, and compliance-related upgrades. The prevalence of rogue traders in the construction and maintenance sector has been a long-standing concern, with landlords vulnerable to financial loss and delays that can impact tenant satisfaction and property standards.
This scheme addresses a critical gap in consumer protection by providing landlords with a vetted pool of builders who adhere to stricter standards. It also introduces a financial safeguard that aligns payments with work completion, reducing the risk of losing large upfront sums. This is especially relevant given the increased regulatory focus on property conditions and safety obligations in the private rented sector.
The government’s move complements other recent reforms aimed at improving standards and transparency in lettings and property management. It also supports landlords’ efforts to maintain properties to a high standard while managing costs and risks more effectively.
Practical implications for landlords and letting agents
Landlords should consider engaging builders who are members of the new trusted scheme to benefit from the enhanced protections. This may involve verifying that contractors have signed up to the Approved Code and understanding the payment milestone system to ensure funds are released appropriately.
Letting agents managing maintenance on behalf of landlords will need to incorporate checks for scheme membership into their contractor vetting processes. They may also need to update payment arrangements to align with the milestone-based system, ensuring compliance with the new standards and reducing the risk of disputes.
While the scheme offers greater protection, landlords should continue to maintain thorough records of all contracts, communications, and payments. This documentation will support any dispute resolution processes and demonstrate due diligence in selecting and managing contractors.
Remaining uncertainties and future developments
Details on the enforcement mechanisms for the Approved Code and the specific criteria for builder membership remain to be fully clarified. It is also unclear how the scheme will integrate with existing consumer protection frameworks and whether participation will be mandatory or voluntary for builders.
The government has indicated plans for a broader overhaul of consumer protection involving organisations such as Citizens Advice and Trading Standards. Landlords should monitor these developments closely as they may lead to further changes in how disputes are handled and how regulatory bodies coordinate enforcement.
There may also be regional variations in adoption and effectiveness, depending on local authority engagement and awareness among landlords and tradespeople. The scheme’s impact on pricing and availability of trusted builders will need to be assessed over time.
What landlords should consider now
- Check whether current and prospective contractors are signed up to the new trusted builder scheme and comply with the Approved Code.
- Review payment terms to ensure they can accommodate milestone-based payments and protect funds during projects.
- Maintain comprehensive records of all building works, contracts, and communications to support compliance and dispute resolution.
- Stay informed on government updates regarding consumer protection reforms and enforcement changes affecting building and maintenance services.
- Consider the scheme’s potential to improve tenant satisfaction by reducing delays and ensuring higher quality workmanship.
Supporting landlords with compliance and contractor management
The Landlord Association (TLA) membership offers valuable resources to help landlords and letting agents adapt to the new trusted builder scheme. Through TLA’s compliance materials, members can access guidance on contractor vetting, payment management, and dispute resolution procedures aligned with the Approved Code.
TLA is also developing ORBIT, a property management and compliance platform currently in BETA testing. ORBIT aims to assist landlords in organising property records, managing maintenance documentation, and recording key actions such as contractor appointments and payments. This can help landlords keep evidence of compliance activity and streamline communication with trusted builders.
By exploring TLA membership and ORBIT BETA access, landlords can better prepare for the new requirements, reduce risks associated with rogue traders, and maintain higher standards across their portfolios.
Landlords should review their current contractor arrangements and consider integrating the new scheme into their property management practices to benefit from enhanced protections and improved project outcomes.
Sources: Landlord Today
TLA - The Landlord Association