Brian Berry is Chief Executive of the Federation of Master Builders. Here, he tells Housing View and Brookbanks about rogue traders, the FMB’s 85-year history, and what he’d say to Andy Burnham
by Ben Wakeling
This article accompanies a podcast hosted by Brookbanks – watch the whole conversation now.
“It seems completely wrong that anyone can be a builder,” says Brian Berry, Chief Executive of the Federation of Master Builders (FMB). We’re talking about cowboy builders, and – more specifically – the current lack of regulation around who can set up a building company.
In fact, the FMB’s own research has found that, over the past five years, around £14.3 billion was paid by consumers to rogue traders – and that’s just the financial impact. The emotional toll is also huge.
“It’s stressful anyway, having work done in your home,” continues Berry, “but then to be ripped off makes it twice as bad. We know that a third of homeowners are reluctant to carry out work to their homes because they don’t know who to trust.”
It’s only fair to good builders that we protect them from the unscrupulous ones.
Berry began his career as a primary school teacher, before moving on to Head of UK Public Policy at the Royal Institution of Chartered Surveyors, then joining the FMB in 2007 and becoming Chief Executive in 2012. (“The hardest job was trying to keep 25 children in order,” he laughs. And the FMB’s members? “They are exemplary.”)
As the head of the FMB, Berry has inherited quite the legacy. It was established in 1941, at the height of the London Blitz, when small builders in the capital found themselves struggling to secure contracts to carry out rebuilding work. The FMB was born to act as a collective voice to negotiate with London councils.
“From that period in 1941 to where we are now, 85 years later, that collective voice is still needed, given the changes that are happening to the industry,” says Berry. “We pride ourselves in representing small building companies.”
In fact, the challenges faced by the building industry today are not too dissimilar to those experienced when the FMB was established. Labour shortages, supply chain issues, a lack of new home building; these remain key issues within the sector, and SMEs are affected more than most. In the late 1980s, 40% of all new homes were built by small or medium-sized developers. Today, the figure has dropped to around 9%.
It’s an industry that SMEs have long struggled to make their mark on, and cowboy builders – firms which take shortcuts, complete shoddy work and rip off customers – do the honest majority no favours.
These kinds of businesses would not achieve membership of the FMB, which implements a 14-point entry check, plus an inspection of their work. As a result, up to 20% of applicants are rejected. Those who do become members, says Berry, are “amongst the best, if not the best, in the building industry.”
This is about tidying up the industry, pushing out the elements that we don’t want.
The answer to eradicating cowboy builders, says Berry, is simple: licensing. It’s an initiative backed by 80% of FMB members. “They value their reputation; it’s only fair to good builders that we protect them from the unscrupulous ones who are damaging the reputation of our industry.”
The model is equally as simple: an independent licensing authority attached to a government department, with firms paying a small fee to a scheme operator. But there’s a balancing act to follow: at a time when the industry is buckling under layer upon layer of regulation, the last thing some builders want is more.
“This is about tidying up the industry,” explains Berry, “pushing out the elements that we don’t want. Builders can demonstrate their competence which hopefully will lead to more work. This will provide consumer reassurance and, if things go wrong, there will be a mechanism for consumers to seek redress and compensation.”
The fee would be “in the hundreds” for small firms, Berry adds; a small price to pay when you consider the billions of pounds lost over the last five years, much of which ended up in the pockets of rogue traders. “If homeowners knew they were employing a licensed builder that had been checked, that would give them the assurance to have the work done to their homes, and it will lead to more work.”
The licensing of builders has been a key message in the collective voice offered by the FMB, and it seems as if the Government is listening. In August, Prime Minister Andy Burnham announced new measures to target cowboy builders and ‘stop people being ripped off during home renovations’. Measures include implementing an Approved Code for trusted traders, a protected payment system and mandatory regulation for private bailiffs.
Berry, in a statement, cautiously welcomed the move. “The Prime Minister’s push to crackdown on rogue builders is a great move for the industry. However, it is a real concern that this is just another voluntary programme without regulation behind it. That said it signals a positive change in the Government’s commitment on the issue. We look forward to seeing more detail and working with the Government to deliver the best result for builders and consumers alike.”
If you could spend five minutes with Burnham, what would you say? I ask. For Berry, the ultimate goal is simple: create an industry which is welcoming for both builders and consumers alike, where smaller developers and traders can thrive.
“That would be my number one ask,” he says. “To create an industry that is attractive, fit for purpose, and is going to actually deliver the infrastructure and homes that this country needs.”