In Britain, Ibstock cuts production by a fifth — The Guardian

In the United Kingdom, the largest brick manufacturer, Ibstock, has cut planned production volumes by 20% after the company’s third-quarter sales came in 22% below expectations. Industry data also showed that the volume of the British brick market in July and August was 17% lower than in the same period of the previous year.

As The Guardian reports, Ibstock shares fell by 11% following a profit warning, nearing their lowest level since the company returned to the stock market in 2015. The company expects its 2026 profit figure to be in the middle of the £40 million range, while the market had expected a figure close to £60 million.

Decline in housebuilding

Ibstock’s worsening performance comes amid a slowdown in UK housebuilding. Developers have cited the need for financial discipline and cost cutting, while Berkeley Homes, a developer operating mainly in south-east England, previously reported that it had stopped acquiring new land plots and hiring staff.

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Among the factors affecting the sector, the article cites changing expectations regarding interest rates and the costs of complying with regulatory requirements. At a time when prices for new homes are not showing significant growth, it is more difficult for developers to offset such costs.

New programme for buyers

John Healey’s government programme, Your First Home, which provides preferential loans for first-time homebuyers, is due to launch in April next year. Ibstock chief executive Joe Hudson said that the delayed launch could restrain demand in the interim period, as potential programme participants may decide to wait for more affordable loans.

Peel Hunt analysts believe that the programme will be moderately beneficial to the market, but lower interest rates will remain the key condition for a recovery in activity in the sector.