MP Warns of ‘Clear, Systematic Failure’ as £21m Lost to Rogue Builders

More than £21 million has been lost in payments to rogue builders in Harrogate and Knaresborough, according to research by the Federation of Master Builders (FMB).

Local MP Tom Gordon warns there is a “clear, systematic failure of the system” to protect people from cowboy builders.

The figures put losses in Harrogate and Knaresborough at £21,461,115, with those affected losing an average of £1,944 each.

Across Yorkshire and the Humber, the total is more than £1.1 billion.

More than 2 in 5 people in the region (42%) say they have hired a builder who turned out to be unqualified or unlicensed.

One in 5 (20%) have been put off having building work done at all because they couldn’t find a builder they trusted. Two thirds (66%) say mandatory licensing of builders would increase their confidence.

Mr Gordon set out the scale of the problem in his own casework on the latest episode of the FMB’s Build Up from the Basement podcast.

Exploiting People

Speaking on the podcast, Tom Gordon MP said: “Originally you get one email in and you think, oh, it’s probably a one-off. Then you get the second one and the third and the fourth, and before you know it there’s a clear, systematic failure of the system here to actually protect people.

“What we’re seeing with some of the people in the industry is that they are completely exploiting people, and ruining people’s lives as well. That’s what it comes down to.

“Parliament hasn’t really got a grip of this. The local authorities and the councils who should be regulating and looking at planning and enforcement aren’t doing their jobs. There’s a massive gap that people are falling through.”

Spray Foam

The MP, who has campaigned on incorrectly installed spray foam insulation since leading a Parliamentary debate on it in December 2024, described one constituent in Knaresborough now effectively living in her garage because her house is covered in mould and damp.

“People who cannot escape this are thinking about it 24/7. It can be absolutely catastrophic for people’s mental health. You can physically see that they’re tense, that they’re stressed, that they’re not sleeping.”

He went on to criticise the current regulatory protection landscape for consumers, describing it as “quite toothless” with “ineffective organisations”.

On licensing small building companies, Tom Gordon said he was open to it: “I’m really flexible about who takes up that responsibility. I think there’s definitely a space there where it could be the likes of the FMB. But it needs to be easily accessible to the consumer. If you invest upfront in enforcement, what you get back down the line in savings makes a better system for everyone.

“My frustration is that quite often when it comes to legislation, we like to reinvent the wheel. There are great examples already from devolved nations, or various other countries around the world, where we can take inspiration from what they do.”

Rogue Builders

Carolyn Frank, Director of FMB North, added: “£21 million lost in one constituency, and £1.1 billion across Yorkshire, is the price homeowners are paying for an industry that anyone can walk into with no checks whatsoever.

“What worries me just as much is the one in five people here who’ve been put off having work done altogether because they can’t find a builder they trust. That’s money not being spent with the good local firms in Harrogate and Knaresborough who do the job properly, employ local people and stand behind their work.

“Our members are vetted and inspected before they join. A Licence to Build would extend that basic protection to every homeowner …, and it’s encouraging to hear an MP dealing with this casework every week reach the same conclusion.”

National Scandal

Brian Berry, FMB CEO, concluded: “It’s a national scandal that anyone can call themselves a builder and start work on someone’s home with no qualifications, no checks and no accountability. £21 million lost in Harrogate and Knaresborough alone is what that failure costs – but there is also the emotional and mental stress that each victim goes through too, after being affected by a rogue builder.

“A Licence to Build would help protect both homeowners and reputable builders and we are delighted to have Tom Gordon MP’s support on this. Hearing how his casework every week has reached the same conclusion – with no resolution for victims – proves that the Government needs to act.”

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