How much deposit is normal to pay a contractor, and how to pay it safely
What counts as a normal deposit
Most renovations fall into a familiar deposit range. Small works sit at the lower end. Bespoke and custom projects sit at the higher end. The numbers below are what we see as normal in both the UK and the Netherlands in 2026, based on a combination of industry guidance from the Federation of Master Builders, TrustMark, and Bouwend Nederland, and what Renno sees on live projects.
| Project type | Typical deposit range | Why this range |
|---|---|---|
| Small repairs or single-room decorating | 0–10% | Materials are modest, work is short, often no deposit at all |
| Bathroom renovation | 15–25% | Tiles, sanitaryware, and labour scheduling need to be committed early |
| Kitchen renovation (off-the-shelf) | 15–25% | Similar to a bathroom, with appliances added |
| Kitchen renovation (bespoke) | 25–40% | Bespoke cabinets need a manufacturing slot and a non-refundable run |
| Loft or garage conversion | 10–20% | Largely labour in early stages, lighter materials commitment |
| Single-storey extension | 10–20% | Foundations and frame committed early but phased |
| Full house renovation | 10–15% | Large total value means even 10% is a meaningful materials float |
A handful of patterns matter more than the exact numbers:
- The lower the percentage, the more stages the contractor needs in the rest of the job to stay cash-positive. A 10% deposit on a £50,000 job works if the next stages release on a schedule. It does not work if the builder is carrying £8,000 of materials until handover.
- Bespoke elements drive the deposit up. A standard kitchen can move at 15%. A bespoke kitchen cannot, because the manufacturer is cutting the cabinets once the deposit is paid.
- Bigger jobs typically carry a smaller percentage deposit because the absolute amount is still large. Ten per cent of £80,000 is £8,000, which is more than enough for early-stage materials.
Why a contractor needs a deposit at all
From the outside, a deposit can feel like a test of trust. It is not. A deposit is usually paying for three specific things, in this order:
- Materials that need to be committed before work starts. Tiles, sanitaryware, bespoke cabinetry, and specialist finishes have lead times measured in weeks. The deposit funds the order.
- A scheduling slot. A good contractor is booked weeks or months ahead. The deposit confirms you are the job in week 12, not a maybe.
- The early site work that starts before the first completed stage. Design lock-in, site visits, procurement coordination, structural checks — none of which show up as a visible outcome, but all of which take time.
A builder who asks for a deposit is normally doing so because they need to do one of those three things on your project. A builder who does not ask for one is either small enough to absorb it (fine), or is taking the job on faith (less fine — and often a sign they are thinly capitalised).
What a safe deposit looks like
A safe deposit has three things: it is visible, it is held, and it is released on an agreed trigger.
- Visible. You can see the money sitting in a dedicated account, not transferred into the contractor’s general business account alongside everything else.
- Held. The money is not released to the contractor immediately. It is held until the first stage of work is delivered and agreed.
- Released on an agreed trigger. You and the contractor both know what has to happen before that stage’s money moves. “First-fix plumbing and electrics installed and tested” is a trigger. “A few weeks of work” is not.
What an unsafe deposit looks like
The pattern that causes most trouble has three or four of these features together:
- A deposit above 30%, sometimes as high as 50%, on a standard renovation.
- No written quote, or a quote that does not specify materials.
- A request to pay by direct bank transfer into a personal or unfamiliar business account.
- No agreement on what work the deposit releases.
- Urgency: “we can only start this month if the deposit lands this week”.
- Cash-only or VAT “forgotten”.
The contractors who ask in this way are sometimes perfectly legitimate, just not great at explaining their own setup. But they are also the pattern that shows up in almost every homeowner-protection case. It is worth checking, kindly, before the money moves.
Consumer protections that apply if something does go wrong
Both the UK and the Netherlands have consumer protections for renovation work that are better than most homeowners realise.
In both markets the same rule of thumb applies: the fastest and cheapest consumer protection is the one you never have to use. A deposit that is held, visible, and released on an agreed trigger is the structural version of that protection.
A decision framework for your project
Three questions get most homeowners to the right deposit number:
- What does the contractor need to buy or commit to before the first completed stage? If the answer is “a lot, and early” — bespoke kitchens, bathroom suites on long lead — you should expect a higher deposit and structure the rest of the job in tighter stages. If the answer is “not much” — a plastering or decoration job — a small or no deposit is normal.
- Is the deposit being held, visible, and released on a trigger? If yes, the percentage matters less. If no, the percentage matters a great deal.
- Does the rest of the job have a stage structure? A 15% deposit followed by one big payment at the end is worse than a 25% deposit followed by four clearly defined stages. Where the deposit sits in the overall structure matters more than its size.
Frequently asked questions
Frequently asked questions about deposits
Is a 50% deposit ever reasonable?
Sometimes, on bespoke kitchens where the manufacturer requires 50% on order. In that case, the 50% is paying the manufacturer, not the contractor, and it should be documented as such in the quote. Outside of that, 50% is almost always too high.
Should I pay a deposit in cash?
No. A paper trail protects you. A deposit should always go through a method that leaves a record — bank transfer, card payment, or a payment platform — and into an account linked to a registered business, not a personal account.
What if the contractor refuses to use a protected payment wallet?
That is useful information. Most contractors welcome a protected wallet because it means they are not arguing about money at handover. A flat refusal is worth a kind conversation about why, and is a reasonable point to pause and compare quotes.
Can I get my deposit back if the work does not start?
If the deposit is being held in a protected wallet with a release trigger, yes. The money has not been released to the contractor. If it has been paid by direct transfer to the contractor's account, recovery depends on the contractor's circumstances and your consumer-law protections — slower, less certain.
How much deposit is normal for a bathroom renovation specifically?
15 to 25 per cent is standard for a bathroom renovation in both the UK and NL, because the tiles, suite, and brassware need to be committed before work starts and the job usually has a fixed end date. A deposit lower than 10% on a bathroom is unusual; a deposit above 30% is worth asking a question about.
How much deposit is normal for a kitchen?
For an off-the-shelf kitchen, 15–25% is normal. For a bespoke kitchen where the cabinets are made to order, 25–40% is normal and usually reflects the manufacturer's own deposit terms. The quote should show clearly what part of the deposit is going to the kitchen manufacturer versus the contractor.
Do I have to pay VAT on the deposit?
Yes, in both the UK and NL, VAT is due on the deposit at the point it is invoiced. A VAT invoice for the deposit amount is standard and should arrive with or shortly after the deposit request.
What if my contractor wants more than 30% but I trust them?
Trust and structure are separate things. A contractor you trust can still meet you on structure: a 30% deposit paid into a protected wallet, released on the first completed stage, is the same outcome as a 35% deposit paid directly, with far less risk on your side if anything outside your control changes.