The UK brickmaking industry is facing significant challenges as housebuilding levels fall short of government targets, raising concerns about the sector’s future viability. Industry veterans and company executives report a sharp decline in demand, leading to rising stockpiles of unsold bricks and financial losses for major manufacturers.

Graham Irving, an experienced brickmaker at Northcot, a Cotswolds-based firm with a history dating back to 1925, described the current downturn as worse than the 2007-2008 financial crisis. Northcot, known for supplying bricks for notable projects such as Battersea Power Station, is grappling with low orders and bleak market prospects. Across England, millions of bricks remain unsold as firms scale back production amid subdued housebuilding activity.

The industry has long been sensitive to housing trends. The Conservative government set ambitious targets to deliver 1.5 million new homes over the current parliamentary term, but these have become increasingly unattainable. Housing Secretary Angela Rayner acknowledged the difficulty of meeting such goals, describing them as a “really difficult stretch target,” despite maintaining commitment to the objective.

Modern construction methods have shifted brick use largely to exterior veneers rather than structural materials, yet bricks remain a favored choice with a wide variety of clay bricks available. Historically, the UK produced around eight billion bricks annually in the late 1960s, but output has declined, with about 50 factories remaining, primarily in the Midlands, supporting roughly 10,000 jobs.

Major producers reflect the sector’s struggles. Ibstock, the UK’s largest brickmaker, posted a £27 million pre-tax loss for the first half of 2026, reversing a profit from the previous year. Forterra and Wienerberger have also signaled caution, attributing declines to minimal housebuilding over the past five years and a volatile economic environment marked by high energy costs and political uncertainty.

The industry’s woes stem partly from rising input costs. UK energy prices for electricity and gas are reported to be two to three times higher than in Europe, where competitors operate under lower costs. Fuel accounts for about a quarter of brick manufacturing expenses, placing UK producers at a significant disadvantage. Additionally, the sector faces competition from imports, including bricks from countries such as India, Pakistan, and Turkey.

Political and economic factors have further dampened activity, such as mortgage rate hikes following the 2022 mini-budget, inflation, adverse weather affecting construction, and speculation over property taxes. Smaller producers like Michelmersh Brick Holdings also feel the impact, particularly as consumers delay renovations and home improvements.

Amid these challenges, there are calls within Parliament to support domestic brickmaking. Labour MP Adam Jogee has introduced legislation seeking government proposals to increase the use of British-made bricks in construction, citing benefits for employment, livelihoods, and environmental impact compared to imports.

The difficulties extend beyond brick production. UK cement manufacturing is reportedly at its lowest levels since the 1950s, with ready-mix concrete volumes also falling significantly. The construction materials sector broadly is affected by similar pressures, including import competition and regulatory barriers.

However, some optimism remains. Pledges from figures such as Andy Burnham to boost council housing could provide a sustained source of demand, potentially stabilizing the market. Industry leaders stress the need for consistent demand and long-term policy confidence to encourage investment and maintain production capacity.

While the sector awaits clearer direction, brickmakers face a complex environment shaped by economic, political, and market factors, underscoring the challenges in sustaining a historically significant British industry amid shifting housing and construction trends.