The proposal, unveiled in the House of Lords, marks the culmination of a decade-long campaign and extensive collaboration across the construction industry.

The FMB’s Licence to Build initiative proposes a mandatory, UK-wide licensing system for all paid domestic construction work, a move supported by strong public demand. New research commissioned by the FMB and the HomeOwners Alliance revealed that nearly half of homeowners wrongly believe that builders are already licensed, while 81% support the introduction of mandatory licensing for residential builders.

At the core of the licensing proposal is a drive to eliminate rogue traders, improve quality across the sector, and provide homeowners with confidence that their builders are competent, qualified, and accountable.

FMB chief executive Brian Berry emphasised the urgency of reform: “You wouldn’t trust a driver without a licence – so why trust a builder? Too many families have suffered financial loss and emotional trauma at the hands of unqualified and unscrupulous operators. Our licensing model is the missing link to drive up standards, protect homeowners, and ensure only qualified firms are allowed to build and improve our homes.”

Berry also highlighted the wider benefits of licensing, including support for the Government’s target of building 1.5 million new homes over the next five years and fostering a level playing field for reputable contractors.

The FMB’s proposal is aligned with safety recommendations from the Grenfell Tower Inquiry. The Inquiry’s Phase 2 report called for a licensing system for principal contractors working on high-risk buildings, with legal responsibilities placed on senior managers to ensure compliance with building regulations. The FMB’s model builds on this, extending accountability and professionalism to the broader domestic construction sector.

The FMB proposes a system where:

• Licensing is mandatory for all paid domestic construction work.
• A single UK licensing authority oversees the scheme and provides guidance.
• Approved Scheme Providers assess firms against national standards.
• Initial and renewal checks are built in, with risk-based follow-up inspections.
• Firms receive provisional licences and are assessed through field checks before full approval.

To obtain and maintain a licence, building companies must demonstrate compliance in four core areas:

1. Health and safety
2. Technical and managerial competence
3. Quality management
4. Dispute resolution and customer service

Additionally, firms must sign a Considerate Contractor Declaration, pledging to uphold best practices in worker wellbeing, environmental impact, and community relations.

The licensing model is designed to be industry-funded, with tiered fees based on firm size and risk level. The original 2018 FMB report estimated a cost of £150 per firm, which would generate around £150 million in funding. Adjusted for inflation and current business population estimates, the average licence fee is expected to be around £172 per firm.

Conservative MP Mark Garnier has been a vocal advocate for licensing through his Domestic Building Works (Consumer Protection) Bill. First introduced in 2021, the bill has faced typical challenges of Private Members’ Bills, including lack of parliamentary time and government support.

However, Garnier has reintroduced the bill in the 2024-25 session, with a second reading scheduled for 13 June 2025. Speaking on the FMB’s Build-Up From the Basement podcast, he expressed optimism that the new Government could provide the backing needed for the bill to progress.

For many homeowners, licensing can’t come soon enough. Mary Lukins, a victim of rogue building practices, shared her harrowing experience with the FMB: “Entrusting my life savings to a builder for a much-needed extension after my MS diagnosis turned into a horrific ordeal. I was left with a damaged home, no savings, and a deep sense of betrayal. The builder misled me, employed unskilled workers, and even dumped rubbish on my property. A proper licensing system is vital to protect vulnerable people like me from this kind of abuse.”

To bring licensing to life, the Government and industry must collaborate on:

• Establishing a central construction regulator
• Developing a unified licensing framework across the UK’s devolved nations
• Defining national standards and inspection protocols
• Conducting a comprehensive cost-revenue analysis
• Drafting and passing enabling legislation

A staged rollout, starting with pilot schemes supported by existing competence bodies, would allow for review and refinement before full implementation.

With strong public backing and clear industry need, the FMB hopes the Government will seize this opportunity to rebuild trust in the construction sector and ensure all UK homes are built by qualified professionals.