Builder deposits and payment stages: what to check
Understand deposits, staged payments and what should be agreed before money changes hands.
Applies to: UK homeowners; this is general information, not a fixed legal deposit limit.
Last checked: 3 October 2026
Key points
• There is no single universal deposit percentage set for every home-improvement job.
• Citizens Advice recommends paying in stages and avoiding large upfront payments where possible.
• Its current homeowner guidance suggests trying not to agree to more than 25% as a deposit.
• Tie later payments to clear, observable stages and keep receipts.
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What should be written down
• The deposit amount and what it is for.
• Who owns materials bought with the deposit.
• The work stage that triggers each later payment.
• What evidence shows that a stage is complete.
• What happens if the scope changes or the job is delayed.
• When the final payment becomes due.
About the 25% figure
Citizens Advice currently advises homeowners to push a deposit down as much as possible and not to agree to more than 25%. Treat that as consumer guidance, not a universal statutory cap: the right arrangement depends on the job, materials, contract and circumstances.
Use stages for larger jobs
Staged payments can reduce risk for both sides when the stages are specific and measurable. Avoid vague triggers such as “halfway through”. A stage such as a defined installation milestone is easier to understand and record.
Official sources
Use these official sources for the current detail that applies to your job, contract or location.
BuildPair provides general information and signposting, not legal, structural, electrical, gas or building-control approval. Requirements can change and the right answer depends on the work, contract, location and facts.
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