The construction industry has come together to develop a mandatory licensing scheme for all UK construction companies to transform the sector into a high quality and professional industry, the Federation of Master Builders (FMB) has announced.

A new Construction Licensing Task Force, supported by a range of leading industry bodies, will lead the development of the licensing scheme. Key statistics relating to licensing and the need for such a scheme include:

• One third (32%) of homeowners are put off doing major home improvement works requiring a builder because they fear hiring a dodgy builder;

• This means that the UK economy could be missing out on £10bn of construction activity per year because of anxiety over rogue building firms;

• More than three-quarters (77%) of small and medium-sized (SME) construction firms support the introduction of licensing to professionalise the industry, protect consumers and side-line unprofessional and incompetent building firms.

Liz Peace CBE, chair of the Construction Licensing Task Force, said: “Mandatory licensing has the potential to transform our industry into a world-leading sector. Licensing will help drive up standards and help address the issue of quality and professionalism, which in some areas, is falling short.”