IN Brief:
- The FMB estimates £2bn in domestic building work is delayed annually in London through lack of consumer confidence.
- FMB research found that 35% of London homeowners had delayed work over five years because they could not find a trusted builder.
- The organisation is seeking licensing and a national Build Academy network ahead of the 28 October Budget.
Federation of Master Builders (FMB) estimates that London homeowners are postponing £2bn of building work each year because they cannot find a contractor they trust. In its 26 October intervention ahead of the Budget, the trade association said 35% of homeowners in the capital had delayed work for this reason over the preceding five years. The proportion is above the UK average of 19%, indicating a substantial barrier to commissioning repair, maintenance and improvement projects.
The FMB developed the underlying research with the HomeOwners Alliance and estimates that delayed domestic building work amounts to £11.2bn annually across the UK. The figures combine reported homeowner behaviour over a five-year period with an estimated annual value of work held back. They are survey-based estimates of potential activity, rather than audited totals of cancelled contracts or work that can be guaranteed to proceed if confidence improves.
Postponed projects can remain in a homeowner’s plans while quotations, recommendations and contractor credentials are assessed. Some may subsequently proceed, while others may be altered or abandoned. The effect on small builders is therefore a reduced or deferred flow of commissions, rather than a directly measured sum of lost invoices. The research identifies consumer assurance as one influence on domestic construction demand alongside affordability, project scope and the availability of skilled trades.
Home improvement enquiries also cover essential repairs. The FMB’s wider findings show that 27% of homeowners undertaking work were upgrading electrics, plumbing or heating to keep their properties safe and habitable; 24% cited structural issues or disrepair. Delays to such work can prolong existing building defects, even though the research does not measure their subsequent technical condition. Domestic contractors frequently have to inspect hidden services and existing fabric before quoting, particularly where the property remains occupied during construction.
Project delivery in occupied homes imposes constraints that are different from those on a cleared commercial site. A contractor may need to sequence electrical isolation, plumbing modifications, temporary protection and structural work while the household remains in occupation. Quoting accurately requires a reliable understanding of existing fabric and services, and the customer must be able to assess the proposed scope, payment structure and competence of the people undertaking the work. These are practical reasons why trust and evidence of competence influence procurement decisions in the domestic sector.
The FMB is pressing the Chancellor to introduce mandatory licensing for domestic building companies and support mediation before cases escalate to an ombudsman. Its six Budget proposals also cover faster planning for small developers, accessible development finance, long-term retrofit demand and training support. These proposals have not yet been adopted by government. Their detailed administration, enforcement and costs would require further decisions if ministers chose to proceed.
Skills are another part of the organisation’s response. The FMB reports that a quarter of Londoners do not know apprenticeships provide a route into construction. Its London Build Academy has spent a year demonstrating opportunities created when small companies open their sites and workshops to younger entrants. The organisation is asking the Chancellor to fund a UK-wide network of Build Academies and reduce the administrative and financial demands placed on small employers taking on apprentices.
Training capacity does not automatically translate into an immediate increase in qualified site labour. Apprentices need supervised work, appropriate tasks and time to develop proficiency, while small employers must balance those commitments with programme deadlines and customer demands. The FMB’s request therefore combines new entry routes with support for the companies expected to offer placements. Its announcements do not establish how many additional qualified tradespeople a national network would produce or how quickly any shortage would be relieved.
Consumer confidence also intersects with standards for building safety and workmanship. Evidence of qualifications, appropriate insurance, verified previous work and clear contract terms can help a client assess a contractor, but none of those checks alone guarantees satisfactory delivery. Separate FMB research has indicated strong public support for licensing and widespread confusion about existing legal requirements for domestic builders. That background helps explain the industry’s case for greater assurance, while the final regulatory decision remains a matter for government.
The London estimate forms part of a regional campaign drawing on earlier homeowner research, rather than the results of a new survey conducted in October. The next immediate decision point is the Budget scheduled for 28 October, when the government may respond to the industry’s requests on licensing, training and small-builder support. For now, £2bn remains the FMB’s estimate of annually delayed work, with no associated public spending allocation or guaranteed recovery of construction orders.
