Should you pay a builder upfront? The UK homeowner's guide to deposits and milestone payments

The safest rule in home improvement is simple: your money should never be far ahead of the work. If you have paid for more than has been done, you are carrying the risk. If the work is slightly ahead of the money, the builder carries a fair share of it — and has every reason to come back and finish.

That doesn't mean every deposit is a scam. Honest trades do sometimes need money for materials, especially bespoke items like made-to-measure joinery or special-order render. The question is always: what is this payment actually for, and can I see it?

There's no law setting a maximum deposit, so it comes down to what is reasonable for your job. As a working guide:

• 0% is normal for small repairs and day-rate work.
• 10–25% can be reasonable on bigger jobs where materials must be ordered in advance.
• 50% or more before starting should make you stop and ask why.

A good test: ask whether you can pay the supplier directly or pay when materials are delivered to your property. A genuine trade will rarely object. Someone who only wants cash in their own account, today, is telling you something.

In most cases, yes. Half the price before a single wall is touched puts almost all the risk on you. If the builder takes on too many jobs, runs into money trouble or simply vanishes, getting that money back can be slow and stressful — sometimes impossible.

Pressure is the other warning sign. "I need it today to lock in the price" or "I can only start next week if you pay now" are classic tactics. A professional with a full diary doesn't need to rush you.

If you like the builder but not the terms, it's fine to counter: offer to cover named materials on delivery and pay the rest in stages. How they respond tells you a lot.

Escrow puts a neutral account between you and the builder. You pay the agreed amount into it, the builder can see the money is committed, and each stage is released only when you confirm it's done. If something goes wrong, the unreleased money stays protected.

This is the idea behind the Trusted Payments app backed by Greater Manchester Mayor Andy Burnham. Read our full explainer on Andy Burnham's builder scheme and Trusted Payments for how it works and where it's available.

Even without an escrow app, you can copy the principle: written stages, payment only on completed stages, and a final amount held until you're happy.

• Get it in writing first. A written quote with scope, materials, timescale and payment stages.
• Pay traceably. Bank transfer or card, with a receipt or invoice for every payment. Credit cards can offer extra protection on larger amounts.
• Avoid cash-for-discount deals. No paperwork means no proof if things go wrong.
• Hold back the final payment. Keep the last stage until snagging is finished — it's your strongest leverage.

Politely decline and offer staged payment instead. If they refuse, walk away — however good the price looks. Cheap quotes that need big cash deposits are often how homeowners end up paying twice.

If you've already paid and the builder has gone quiet, put your concerns in writing, keep every message and receipt, and contact Citizens Advice, which refers cases to Trading Standards. Our checklist of cowboy builder warning signs can help you spot trouble earlier next time.

On QuoteDrop, homeowners never pay us anything. Trades are ID-verified, quotes come back in writing through the app, and your address and contact details stay private until you accept a quote. Any payment schedule is agreed directly between you and the trade — and we always recommend staged payments, never everything up front.