Nearly half of adults wrongly believed that builders are licensed, research from the HomeOwners Alliance and the Federation of Master Builders found.
The survey showed that 47% of UK adults and 39% of UK homeowners thought builders needed a licence.
Support for change was high among homeowners, with 81% backing a mandatory licensing scheme for builders.
The research also found that 65% of homeowners thought builders must have insurance for accidental damage, but this is not required.
Around 32% believed builders needed to register with a Government or regulatory body, but no such rule exists.
Additionally, research showed that younger homeowners aged 18 to 34 were more likely to think builders had to be registered (66% compared to 32% of all homeowners).
Female homeowners were more likely to expect builders to have a licence to trade (46%) than male homeowners (32%).
The HomeOwners Alliance and the Federation of Master Builders called for a licensing scheme to bring in competence checks, background checks, a dispute resolution process, and licence removal if standards are not met.
Paula Higgins, CEO of HomeOwners Alliance, said: “We have supported FMB’s campaign for the licensing of builders for over 10 years and its high time the government acted.
“I would hate to think how many people have fallen victim to rogue traders or poor-quality work, how many millions of pounds of household’s money has been lost and victims left to clear up the mess over the last decade alone.
“When it comes to appointing a builder, homeowners shouldn’t have to cross their fingers and hope that their builder is one of the good ones. Government needs to protect homeowners through licensing.”
Brian Berry, CEO of the Federation of Master Builders, said: “Homeowners having building work done to their homes are at risk unless they carry out background checks.
“The survey finding that nearly half of homeowners mistakenly believe builders have a licence to trade is very concerning as they could be putting themselves at risk.
“Building work is often a complex and at times a dangerous job and needs to be underpinned by standards and legal accountability.”
Berry added: “Successive governments have failed to act to protect homeowners from rogue builders – an unwanted part of the industry that is so prolific that it has generated its own TV shows.
“We can’t allow just anyone to call themselves a builder anymore. The Government must step up and bring in a licensing scheme that puts quality, safety, and accountability first.”
