The Federation of Master Builders (FMB) has launched its model for licensing building companies, after a decade long campaign and cross-industry collaboration to get the issue on the Government’s agenda.
The FMB’s “Licence to Build” campaign model sets out a clear, robust framework for licensing domestic builders. The model responds to strong industry and public support, with almost half of homeowners wrongly believing that builders are licensed – following new research commissioned by the FMB and Home Owners Alliance. The need for licensing is also backed by the public – with 81% supporting proposals for a mandatory licensing scheme for residential builders.
Why Licensing Matters
The introduction of a mandatory licensing system for domestic builders is not only about protecting consumers and rooting out rogue traders, it is also crucial for meeting the Government’s housing targets of delivering 1.5 million new homes over the next five years. Recent figures show the government is at risk of falling short of these targets, with industry leaders warning that more urgent interventions are needed to boost supply and ensure quality.
Ensuring that only competent, qualified builders are allowed to operate will help deliver homes that are safe, high-quality, and built to last-giving homeowners confidence and supporting the delivery of these new homes. Furthermore, a robust licensing system will also help create a level playing field for reputable builders, drive up industry standards, and support economic growth.
Furthermore, The Grenfell Tower Inquiry Phase 2 report recommended the introduction of a licensing scheme, operated by the construction regulator, for principal contractors undertaking the construction or refurbishment of higher-risk buildings, making it a legal requirement that building control approval applications be supported by a personal undertaking from a senior manager to ensure the building’s safety meets Building Regulations.
How Would It Work?
Licensing is mandatory for all paid-for domestic construction work by contractors. The scheme is funded by industry fees, which are tiered according to firm size and risk level, ensuring proportionality and accessibility – initial and renewal checks are built into the system. After the first and third years, further checks are based on risk factors or if there are significant changes in management. Failure to meet standards can lead to appeals, sanctions, or loss of licence.
- A single UK licensing authority acts as the main point of contact. This body provides clear guidance and signposting for firms seeking to become licensed.
- Firms apply for a licence via an approved Scheme Provider. The central licensing body’s website helps firms identify the right provider for their needs.
- These providers are responsible for assessing applicants against national standards.
Upon application, firms may receive a provisional licence. During this period, sporadic field checks are conducted to assess competence and quality before a full licence is granted.
Four Pillars of Licensing: To obtain and retain a licence, firms must meet and maintain standards in four key areas:
- Health and safety
- Competence (technical skills, management, regulatory understanding)
- Quality management
- Dispute resolution and customer service
Firms must also sign a Considerate Contractor Declaration, committing to best practice in worker wellbeing, community relations, and environmental impact.
Cost?
The 2018 Licence to Build report drew on historic data on Corgi running costs (equating to £113 per operative) and estimated that if each of 1 million UK construction firms paid £150 for a licence, this would equate to £150 million of income. Business Population Estimates for 2024 point to a smaller number of construction fi rms (870,185), meaning each firm would need to pay £172 to equate to the same level of income, before accounting for 28% inflation between 2018 and February 2025.
FMB CEO Brian Berry said:
“You wouldn’t trust a driver without a licence-so why trust a builder? For over a decade, the FMB has campaigned for a mandatory licensing system of building companies because we have seen first-hand the devastating impact rogue builders can have on innocent homeowners. Too many families have suffered financial loss, emotional distress, and even unsafe living conditions at the hands of unqualified and unscrupulous operators. Our licensing model is the missing link to drive up standards, protect homeowners, and ensure that only competent, qualified building firms are allowed to build and improve our homes. This is about restoring trust and professionalism to our industry, supporting reputable builders, and finally giving consumers the confidence and protection they deserve. We sincerely hope that the Government will put protecting the consumer at the top of its agenda. Now is the time for action to deliver the change the public and industry need.”
Mark Garnier, Conservative MP for Wyre Forest has been at the forefront of parliamentary efforts to introduce a licensing system for domestic builders through his Private Members’ Bill, the Domestic Building Works (Consumer Protection) Bill.
The Bill was first introduced in the House of Commons on 21 June 2021 during the 2021-22 parliamentary session. Despite cross-party recognition of the problem and supportive debate in Parliament, the Bill faced significant obstacles. Like most Private Members’ Bills without government backing, it struggled to progress due to limited parliamentary time and lack of official support.
Mark Garnier MP reintroduced a similar version of the Bill in the 2024-25 session, with its first reading last year and its second reading scheduled for 13 June 2025. Speaking about the complexities of getting the Bill through Parliament, Mr Garnier told the FMB’s ‘Build-Up From the Basement’ Podcast he has “more hope” for the Bill under the new Government.
Mary Lukins, one of the many victims of an un-convicted rogue builder told the FMB:
“The FMB’s campaign for licensing is the last hope for many victims of cowboy builders like me. Entrusting my life savings to a builder for a much-needed extension after my MS diagnosis turned into a horrific ordeal. My home needed future-proofing, but instead, I encountered deception and destruction. After a hefty deposit, promises of materials went unfulfilled, followed by a parade of excuses, including lies about winning disability adaptation contracts. Instead of skilled tradesmen, a crew of unskilled laborers arrived, damaging my property and smashing my drains. I ended up urinating in a bucket. The promised mini-digger never materialised, turning my garden into a dumping ground. The ‘builder’ was constantly absent. I felt intimidated and degraded and with a growing sense of dread. To make matters worse, he then dumped someone else’s rubbish on my driveway and refused to move it, and damaged my car as well. Now, I am left with a damaged house, a drained pension, and the agonising realisation that an industry body’s vetting process failed me. Regulation is desperately needed to protect vulnerable homeowners from such predatory practices, and to ensure basic sanitation on building sites.”
What’s next?
To establish an effective construction licensing system, the UK Government and industry competence bodies must develop a workable licensing scheme while continuing plans for a single construction regulator to serve as a UK licensing body.
Stakeholders need to reach agreement on geographical license operation across the Home Nations, alongside identifying scheme providers and establishing operational requirements including technical standards, license approval processes, and compliance inspections.
A comprehensive assessment of costs and revenue is essential to create a self-sustaining industry-funded model, followed by development and implementation of appropriate legislation. The final step requires staged implementation beginning with pilot programs supported by existing construction competence bodies, with a built-in review and evaluation period before full-scale rollout.
To find out more about the work of the Federation of Master Builders (FMB) click here
