{
  "id": 17832252,
  "title": "Brickmaker’s woes deepen the UK housebuilding gloom",
  "url": "https://urgent.news/2026/11/02/brickmakers-woes-deepen-the-uk-housebuilding-gloom",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-02T17:23:41.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/business/nils-pratley-on-finance/2026/nov/02/brickmakers-woes-deepen-the-uk-housebuilding-gloom"
  },
  "original_language": "en",
  "account": "Ibstock, the UK's largest brickmaker, has issued a severe profit warning, with sales falling 22% short of expectations in the third quarter. The slowdown in the housebuilding sector appears to be continuing, as Ibstock's sales were 17% lower than the previous year in July and August. The company has reduced its production volumes by a fifth compared to what was planned just months ago, resulting in an 11% drop in its share price. In 2026, top-line earnings are expected to be in the mid-£40m range, down from an estimated £60m. Builders are adopting a cost-cutting approach, with some, like Berkeley Homes, even halting the purchase of new land and hiring new staff. The primary reason for the sector's decline is attributed to shifting interest rate expectations due to the Iran war. The Bank of England is likely to increase rates in the near future, raising concerns about the direction of future rate hikes. Housebuilders are also grappling with the rising regulatory costs, which are harder to manage when house prices remain stagnant. The launch of John Healey's Your First Home scheme, aimed at providing affordable mortgages, is seen as a positive development by the builders, although it is not expected to be a significant game-changer. The scheme's caps on transaction sizes and postponement to April next year may dampen its impact on demand. Additionally, Healey confirmed that there will be no further changes to building regulations during the current parliament, apart from essential safety measures. However, existing regulations will remain in place. While Your First Home is expected to offer \"modest help,\" experts believe that lower interest rates are crucial for reviving sector activity. Ultimately, the outlook remains uncertain, with the government's target of constructing 1.5 million new homes during the current parliament appearing increasingly challenging to achieve.",
  "summary": "Ibstock has issued a thumping profits warning, with sales 22% below expectations in the third quarter With John Healey’s Your First Home scheme on the way, is the mood improving in the housebuilding sector? A couple of the builders have results later this week, so can speak for themselves. In the meantime, though, here’s a thumping profits warning from Ibstock, the country’s biggest brickmaker,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}