The Federation of Master Builders (FMB) is calling on the Chancellor to use Wednesday’s Budget to help homeowners improve the homes they live in, as new figures show a lack of confidence in builders is costing the economy £11.2 billion a year.
One in five (19%) homeowners have put off work on their home because they couldn’t find a builder they trust, according to research by the FMB and the HomeOwners Alliance. Most of that work is not cosmetic: more than a quarter (27%) of homeowners doing building work were upgrading electrics, plumbing or heating to keep their homes safe. Separate FMB research found almost half (49%) of homeowners would tackle structural work, such as knocking down a wall, themselves rather than hire a professional.
It comes as the construction industry braces for a downturn, with home repair, maintenance and improvement work forecast to take the biggest hit, and more than half of aspiring first-time buyers believe they will never get on the property ladder, according to the HomeOwner Survey 2026 by the FMB and HomeOwners Alliance. With moving out of reach for many, more families are looking to improve the homes they already have.
The FMB is calling on the Chancellor to:
• Cut the rate of VAT on energy-efficiency home improvements: simplify and extend VAT relief when improvements include energy-efficiency measures. Domestic electricity has been VAT-free since 1 October; making homes warmer should not carry a 20% charge.
• Give homeowners long-term support: lasting incentives for owner-occupiers and a stable Warm Homes Plan, so local building companies have the confidence to invest in skills.
• Introduce mandatory licensing of building companies: a Licence to Build for domestic building companies, setting minimum standards of competence, with mediation before disputes escalate to an Ombudsman.
• Back apprenticeships: fund support services that reduce the administration and financial risk of taking on an apprentice, and roll out a UK-wide network of Build Academies.
• Fix planning capacity: boost local authority planning teams and review unnecessary application requirements and costs.
Brian Berry, Chief Executive of the Federation of Master Builders, said:
“This Budget is an opportunity for the Chancellor to back homeowners and the small building companies that repair, maintain and improve the nation’s homes. With moving home out of reach for many families, more people want to improve the homes they already live in, but too many are being held back.
Berry continued:
“One in five homeowners are putting off work because they can’t find a builder they trust, and that is costing the economy £11.2 billion a year. Much of this is essential work, such as fixing faulty electrics and unsafe heating. The Government should introduce mandatory licensing, to give homeowners the confidence that the builder they hire is competent to do the job .Many of the measures we are calling for come at little cost to the Treasury. Cutting VAT on energy-efficiency improvements, backing apprenticeships, and giving homeowners the confidence to hire a reputable builder would support local jobs and growth in every part of the country. The Chancellor should not miss this opportunity.”
