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Ibstock profit warning deepens concerns over UK housebuilding slowdown
Ibstock, the UK’s biggest brickmaker, has warned that profits will fall as weak demand deepens the slowdown in housebuilding. The warning suggests the sector is facing an entrenched downturn, putting pressure on the government’s ambition to build 1.5 million homes during this parliament.
UK brick market volumes fell 17% year on year in July and August, while Ibstock’s third-quarter sales were 22% below expectations. The company cut planned production by a fifth and expects 2026 earnings in the mid-£40m range, against City forecasts close to £60m; its shares fell 11%. Housebuilders cite higher borrowing costs and regulation, while the planned Your First Home scheme, due next April, may lead some buyers to wait and is expected to offer only modest support.
In short
- Ibstock’s third-quarter sales were 22% below expectations.
- The brickmaker cut planned production by a fifth.
- The planned homebuyer scheme may offer only modest support.
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The case for
The warning can be seen as evidence that high borrowing costs, regulatory burdens and cautious buyers are constraining construction, making the government’s 1.5 million home target harder to reach. On this view, easing barriers and improving the conditions for building would support jobs and investment while helping increase housing supply over time.
The case against
A fall in brick demand and one company’s profit warning do not by themselves establish that the housing slowdown is entrenched or that the government should change course. The planned first-home scheme could offer some support, and maintaining regulation and affordability safeguards may be justified even if they add costs or slow building in the short term.
Explained simply
Ibstock makes bricks used in building homes and other construction projects, so demand for its products can reflect how much building work is under way. Housebuilding in the UK is affected by factors such as the cost of mortgages and the rules developers must meet.
The government has pledged to build 1.5 million homes during this parliament. Meeting that target depends partly on housebuilders starting and completing enough projects, while brickmakers and other suppliers depend on those projects for sales. Changes to housing support schemes can also influence when some buyers choose to purchase a home.
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Originally published by The Guardian as “Brickmaker’s woes deepen the UK housebuilding gloom”.