A British brickmaker has closed its 139-year-old factory - blaming a collapse in house building across the country as the UK economy suffers yet more setbacks.Michelmersh Brick Holdings' Charnwood plant, in Leicestershire market town Shepshed, has been building homes with traditional handmade red bricks since the Victorian era. But after a slump in demand and 'a lack of confidence' among consumers, the firm has announced the factory will close as it prepares to consolidate its manufacturing operations at its other factory in Romsey, Hampshire.Michelmersh said the closure will result in 28 job losses and the site could be put up for sale. It comes as housebuilding figures plunged to a 12-year low last autumn despite one of Labour's key manifesto pledges being to deliver 1.5million new homes by 2030.On top of this, builders across the country have started to scale back development plans due to rising costs following the war in Iran.The impact of war is becoming more and more apparent in the construction industry, with Michelmersh reporting a 10 per cent dip in demand for bricks in the first three months of 2026 compared to last year. To tackle surging costs, the construction industry is looking to use more timber if bricks and other traditional heavy materials become too expensive. The entrance to Michelmersh Brick Holdings' Charnwood plant, in Leicestershire market town Shepshed that has been building homes with handmade red bricks since the Victorian era Charnwood produces 3million bricks a year yet Michelmarsh has announced the site will close as it prepares to consolidate manufacturing operations at a factory in Romsey, HampshireMichelmarsh's chairman Tony Morris said the company had been hit by 'low consumer confidence and the associated uncertainty in construction project commencement dates'.He told the company's AGM yesterday: 'The decision to expand operations at Romsey has unfortunately facilitated the full wind-down of operations at our site with operations expected to conclude by the end of May.'The future for the freehold of is now under strategic review. We are grateful for the service of the team over many years and they will leave Michelmersh with our sincere thanks for all their efforts on behalf of the Group.'Michelmersh will move all its operations to the Hampshire plant where there has been increased production of machine-made bricks. Early brickwork in Leicestershire dates back to the Tudor era when the construction of redbrick buildings such as Bradgate House in 1542 - the home of Lady Jane Grey -replaced local stone and timber which was historically used in construction.Thanks to the area's deep deposits of red Keuper Marl clay, Leicestershire became a brickmaking hub for the UK. The Industrial Revolution transformed brick building, turning small localised kilns into massive commercial operations and in 1887 Charnwood Forest Brick was founded in Shepshed. During this period, bricks made in Charnwood were used to build local landmarks such as Loughborough Grammar School.Carrying on into the 20th and then 21st centuries, Charnwood remained a centre for brick making. In 1999, Charnwood Forest Brick was bought by Michelmersh where it produced roughly three million bricks per year. The Leicestershire closure comes amid a series of setbacks for the UK economy.Official figures in January revealed that just 47,600 new homes have been built in the capital since Labour came to power in July 2024, out of 309,600 across England.The capital's figure was far short of the target of 88,000 new homes a year set by the Government to meet its goal of 1.5million across the country by 2029.Sir Keir Starmer's Government has set a target of building 1.5 million new homes by the end of the current Parliament - but there are industry fears that this will not be possible.The number of UK construction workers fell to 2million in the third quarter of last year - the lowest for 25 years - and while 35 per cent are aged over 50, only 20 per cent are under 30. Michelmersh said the closure will result in 28 job losses and the site could be put up for sale Charnwood Forest Brick was founded in Leicestershire market town Shepshed in 1887 Bricks made in Charnwood were used to build local landmarks such as Loughborough Grammar School Michelmarsh's chairman Tony Morris said the company had been hit by 'low consumer confidence and the associated uncertainty in construction project commencement dates'The Construction Industry Training Board has warned that 61,000 new workers each year would be needed to hit the 2029 housebuilding target. The Office for Budget Responsibility last year forecast there would be 305,000 new homes built a year in the UK by the end of the decade.This would see a total of only 1.3 million new homes across the entire UK from this year to 2029/30, the watchdog estimated.It said Labour's planning reforms would only add an extra 170,000 new homes, but the Government claimed the OBR had not factored in other key changes being made.And the Home Builders Federation wrote to the OBR last October, saying even their estimates were 'only achievable' if the Government provided help for first-time buyers to stimulate demand and reduced planned taxes on new homes that were making many sites 'unviable'.It has also been revealed today that government borrowing soared by a quarter to a higher-than-expected £24.3billion last month after record debt interest costs.The Office for National Statistics said borrowing was £4.9billion higher than a year earlier, to reach the second highest April level on record – surpassed only during the Covid-19 pandemic era, when borrowing was sent rocketing.