UK's 139-year-old handmade brick factory to close as Labour pledge crumbles

A British brick manufacturer is closing a factory that has been making handmade red bricks for 139 years, as collapsing housebuilding levels and the economic fallout from the war in Iran squeeze the construction industry.

The Express understands Michelmersh Brick Holdings said it would shut its Charnwood Plant in Shepshed, Leicestershire, by the end of this month, resulting in 28 job losses. Falling orders for building materials were the immediate trigger, with Michelmersh pointing to a climate of "a lack of confidence" among consumers that it said was putting a brake on construction projects nationwide.

Across the sector as a whole, the volume of bricks leaving factories in the first quarter of 2026 was running approximately 10 per cent below the equivalent period in 2025, according to Michelmersh's reported figures.

Government data published last autumn showed new home construction in England had fallen to its lowest level in 12 years, an uncomfortable backdrop for a Labour administration that has promised 1.5 million new homes by the end of the decade, reports The Telegraph. Builders have been reining in development plans in recent months as rising costs driven by the Iran war take hold.

The site's history stretches back to 1887, when it first opened under the name Charnwood Forest Brick, passing into Michelmersh's ownership more than a century later in 1999. The company said it would consolidate its manufacturing operations at its other site in Romsey, Hampshire, where it has been expanding production of machine-made brick panels and building products. Michelmersh is also considering the future of the Charnwood freehold, including a potential sale.

Tony Morris, chairman of Michelmersh, said the company had been seeking "the appropriate balance between production volumes and customer demand expectations [and was] constantly reviewing the cadence of our manufacturing operations."

He added: "We are grateful for the service of the Charnwood team over many years, and they will leave Michelmersh with our sincere thanks for all their efforts on behalf of the group."

The closure comes as the wider sector faces mounting pressure. Ibstock, Britain's biggest brick maker, reported an 11 per cent drop in domestic brick market volumes during the first quarter of the year.

Chief executive Joe Hudson is reported to have said the industry was contending with both weaker consumer confidence and the economic consequences of the Iran war, warning that higher energy and fuel prices were driving up cost inflation that was "likely to persist into the second half of the year."

Builders across the country are also drawing up contingency plans for surging material costs. In April, Barratt Redrow, Britain's biggest housebuilder, said it was considering switching to more timber construction if bricks and other traditional heavy materials became prohibitively expensive.