'We've been left homeless after our builder went bust'

A woman has called for better support to protect customers if the builders working on their home go bust, after her family was unable to return to their house because of unfinished construction work.

Naomi Nygaard and her family stayed in 13 different properties while a builder carried out extension work at their Sheffield home. After months of delays she said he walked away with the "work unfinished," claiming the firm was insolvent.

She said the experience had been "so traumatic" and had "wiped away" any feeling of stability and security, so much so "my kids call it our broken home".

The Federation of Master Builders (FMB) said there was currently "no safety net or legal route" suitable for victims and are calling for building companies to be licensed.

The family-of-four moved out of their home in September 2025 when their builder began work on the £40,000 extension to the rear of the property in Fulwood.

"I feel a bit ashamed to say this, but I asked AI to give me a list of builders that came highly recommended, that had really good professional experience," Nygaard said.

"He was clearly someone that had a lot of different expertise.

The work was due to be completed in a month, while the family stayed with friends, and they had aimed to be back in their home by 30 September to enjoy their new conservatory.

However, Nygaard said doubts began to creep in.

"It didn't seem like much work was being done, just some demolition work," she said.

She called Covea Insurance and the firm confirmed the builder's policy was up to date and valid.

"We were in email communication with him and he was very apologetic about things being delayed," she said.

"He said it was because of supply issues with steel beams, but at this point we'd paid him two thirds of the total payment - £25,000."

The family searched for more temporary homes while the work continued, but found it increasingly expensive.

A stay in one Airbnb cost them £2,000 per month, Nygaard said.

During a visit to their home in October, she said she had spotted "large cracks" in the upstairs bedrooms where the extension was due to be built.

She said she called in a structural engineer and was told it was not safe to return to the property, even to access her belongings.

The builder said he disputed the couple's version of events and that Nygaard and her partner had "repeatedly insisted" on pausing the work.

He said this had "exacerbated movement in the brickwork", adding that a structural engineer "cannot sign off on a project while it remains mid-completion".

The "financial strain" caused by those delays ultimately led to the firm's insolvency, he said.

However, the couple denied ever pausing the work and said the builder "continues to have every opportunity to repair the damage and finish the contract".

During this time the FMB paid two visits to the site and completed a dispute inspection report.

In the report, the inspector said the builder had not provided the service the FMB "would expect" from its members and described "obvious disregard" for site safety and management.

The workmanship was described as "questionable" and the building was left "unsafe," according to the report.

The FMB also confirmed the the builder had now been removed as a member and would not be "eligible for re-entry" into membership.

In January 2026, the family discovered the builder had stopped paying his public liability insurance with Covea and had cancelled the policy on 5 November and "backdated" the outstanding debt to September - which "voided" his insurance cover.

A spokesperson from Covea Insurance said: "We're sorry to hear about the situation described and understand the distress this may have caused.

"We've been made aware of the dissatisfaction raised and are currently looking into the matter. While this is ongoing, we're unable to comment further at this time."

The Nygaard family's own home insurers, Pen Underwriting, confirmed their policy was not designed to cover or pay for any liability linked to work by contractors.

"Our home insurance policies will clearly state that any loss, damage or liability arising out of the activities of contractors ie faulty workmanship will not be covered or paid for," a spokesperson said.

Nygaard said there was a "huge heaviness" over her family, who she said had been left "homeless" and "in limbo".

"It feels like a wound on the house. I don't know how we're going to get through all the obstacles required in order to get our house weatherproof and structurally safe," she said.

The FMB has called for more regulation in the building industry and the introduction of a UK body overseeing a potential system to licence builders.

A spokesperson for the federation said the lack of a licensing scheme meant "consumers are not protected properly".

A Department for Business and Trade spokesperson said they supported "the TrustMark scheme which helps consumers find good traders and provides redress if work does not meet those standards".

They said anyone affected by problems with traders can contact their local authority.

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