New Companies House reforms designed to crack down on dodgy companies will not protect homeowners from rogue builders, the Federation of Master Builders (FMB) has warned, as the construction industry calls for licensing to close the consumer protection gap.
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) – the biggest overhaul of UK corporate transparency since 1844 – is being implemented in phases, with critical deadlines approaching this year. From spring 2026, accountants filing on behalf of clients must register as Authorised Corporate Service Providers, while all existing company directors face a November 2026 deadline to complete identity verification or face fines and removal from the register.
Brian Berry, Chief Executive of the FMB, said:
“We welcome the Companies House reforms as an important step in tackling economic crime, but they don’t go far enough to protect homeowners from rogue builders. These reforms will verify a builder’s identity, but they won’t verify their competence, their insurance, or their track record. Anyone can still call themselves a builder with zero barriers to entry and zero protections for consumers.”
“Homeowners are being left in horrific situations – we’ve seen vulnerable people living without working toilets for over a year, wheelchair users left homeless on their own property, life savings wiped out. The legal system is failing them. That’s why we’re calling for mandatory national licensing with minimum competency standards for all builders. ECCTA tells you who they are. Licensing would tell you if the builder is qualified and competent builder. Complete consumer protection requires both.”
By contrast, FMB members undergo rigorous vetting before they can join, which includes: insurance verification, financial background review, directors’ background checks, online review assessments, and trading history verification. On top of this, FMB inspectors examine prospective members’ work on site before approval and members must agree to the FMB Code of Conduct with regular ongoing monitoring throughout their membership.”