How to Avoid Builder and Handyman Deposit Scams in London (and What to Do If It Happens)

You find a builder, the price sounds fair, they ask for a deposit to "order materials and lock in the date". You pay. Then the replies get slower, the start date moves, and one day the phone just rings out.

It happens to careful people too, and it happens across London every week. The good news is that it's very avoidable. Nearly every deposit scam has the same warning signs, and a few checks that take less than ten minutes will tell you whether the person in front of you is a real, accountable business. This guide shows you those checks, how much deposit is fair, how to pay so your money is protected, and exactly what to do if it has already happened to you.

How deposit scams usually work

The details change, but the pattern is almost always one of these:

• The vanishing start. A deposit is taken for "materials", and the job never begins. Delays, excuses, then silence.
• The half-done job. Work starts, a big stage payment is asked for early, and the team disappears with the house half stripped out.
• The price that grows. A low quote wins the job, then "unexpected problems" need more money upfront before anything else happens.
• The company that closes. A business takes deposits, shuts down, and the same people open a new one under a different name.

What they have in common is that the money arrived before there was anything real to show for it, and the person taking it was hard to trace. Every check below closes one of those two gaps.

Check your builder in 2 minutes

Tick everything that's true for the builder or handyman you're thinking about. Your answers stay on your screen: nothing is saved or sent, and it all clears when you leave the page.

7 checks before you pay a penny

1. Look them up on Companies House

If they say they're a limited company, search the name or number on Companies House. It's free and takes a minute. Check three things: the status says Active, the name on your quote matches exactly, and the directors' names match the people you're dealing with. You can also click a director's name to see their other companies. Lots of closed companies doesn't prove anything on its own, but it's a fair question to ask them about. Sole traders don't appear on Companies House, so for them, make sure you have their full name and address in writing.

2. Make sure you can find them again

Before you pay, make sure you have contact details you could actually use: their full name or company name, a phone number, an email and an address, in writing. If all you have is a mobile number and "Dave", you have nobody to chase if something goes wrong.

3. Get the quote in writing, with the payment plan

The written quote should list what will be done, the total price, and when each payment is due and what it's for. "50% deposit, balance when we finish" is a plan. "Cash up front and we'll sort the rest" is not.

4. Ask what the deposit actually pays for

A fair deposit pays for something real, usually the materials ordered for your job (a kitchen, tiles, timber), and sometimes to reserve your start date. Whatever the reason, the amount and what it's for should be agreed clearly, in writing, before you pay. A good builder answers that question straight away. If the answer is vague, so is your protection.

5. Check reviews where reviews are checked

Testimonials on a builder's own website can be written by anyone. Look for them on platforms that check who leaves a review, and read the low scores as well as the high ones. How a business replies to a complaint tells you a lot.

6. Ask about insurance

Public liability insurance covers damage to your home or injury to someone during the work. Ask to see proof of their cover and check what it includes. A genuine business won't mind you asking.

7. For gas or electrics, check the register

Anyone working on gas must be on the Gas Safe Register. Most electrical work in homes should be done by an electrician registered with a competent person scheme, which you can check on Electrical Competent Person. Our guide on handyman or specialist explains which jobs need which.

How much deposit is fair?

There's no legal maximum for a builder's deposit in the UK. What matters is that it matches something real, and that the payments after it follow the work. On a larger job, payments in stages are normal. The work finished should always be roughly ahead of the money paid.

Put in your quote and see how it looks:

Two rules to keep in mind whatever the number. Never pay the final payment until the work is finished and you've checked it. And never pay a stage early because the builder "needs it for the next bit".

How to pay so your money is protected

How you pay matters as much as who you pay. From most to least protected:

Whichever way you pay, get a receipt for every payment, showing what it was for. If anything goes wrong later, that paper trail is your case.

It's already happened: what to do now

If you've paid a deposit and the builder has gone quiet, don't wait and hope. Work through these in order:

1. Put it in writing. Send a message or email (template below) asking for a start date or your money back by a set date. Keep it calm and factual.
2. Collect your evidence. The quote, every message, every payment receipt or bank statement line, and photos of anything that was started.
3. Contact your card provider or bank. Paid by credit card? Ask whether you can make a Section 75 claim. Debit card? Ask for a chargeback. Bank transfer and you think it was a scam? Tell your bank straight away.
4. Get free advice. The Citizens Advice consumer service can tell you where you stand, and passes reports to Trading Standards.
5. Report fraud. If you believe they never meant to do the work, report it to Action Fraud and keep the crime reference.
6. Claim your money back. For amounts up to £10,000 in England and Wales you can use the small claims court online with Money Claim Online. You don't need a solicitor.

How we work at Handy 4 London

We wrote this guide because we hear these stories from our customers, often from people who were let down by someone else before they called us. Every check in this guide, you can run on us. Here's how we work, from the first quote to the final receipt:

You'll deal with Vas, who runs the work, and Beatrice, who runs the office, the same two people from the first message to the final receipt. Read more about us.

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