WORKLOADS for builders in the North have risen for the first quarter of the year and are expected to continue to rise, according to the Federation of Master Builders.

The news will offer some reassurance to economists who regard expenditure on building works as a useful indicator of consumer confidence and general economic activity.

However, the buoyancy of the sector will mean that homeowners will have to be on their guard against cowboy builders attracted by easy pickings.

According to the State of Trade Survey, builders' workloads in the North have increased by 35 per cent, compared with an overall UK increase of 36 per cent. Repair, maintenance and improvement of private housing continues to show positive growth.

However, the impetus for the increase has been with the repair and maintenance of non-residential and public buildings, together with orders for new industrial and commercial buildings.

Forecasts are for a further 52 per cent increase in building workload during the second quarter.

The rise in workloads has resulted in builders reporting difficulties in recruiting skilled craftsmen to help meet demand.

Just over half, 52 per cent, reported problems in finding bricklayers, carpenters, plasterers or plumbers.

A major issue for builders is the influx of cash-in-hand rogue traders attracted by the buoyancy of the sector.

Homeowners are deterred by having to wait until a reputable builder is available and are attracted by the prospect of the 17.5 per cent VAT-free discount.

"This is a false economy," warned Barry Oliver, regional director of the Northern region branch of the Federation of Master Builders (FMB).

He said: "The home is often your most important asset, so it is better to get the job done right rather than pay a rogue trader for a second-rate bodge job which, if things go wrong, leaves you with no legal recourse and will probably need a proper builder to correct. You get what you pay for."

The FMB is working closely with the Government in introducing initiatives to combat cowboy builders and has welcomed the recent budget announcement of reducing the rate of VAT to five per cent, limited by guarantee, on the conversion of non-residential property into homes and the conversion of houses into flats.

This is a positive step towards an overall reduction of the rate of VAT on building work which would remove much of the incentive for the employment of cowboy builders.

A further problem for reputable builders, compared to rogue ones, is the amount of legislation and bureaucratic red tape that they have to contend with.

"The positive workloads for builders and high levels of inquiries for future work undermine the speculation that Britain could be entering a recession', said Mr Oliver. "However, although order books are full, the actual business environment for reputable builders is compounded by the issues of cowboy builders and red tape.