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Ikea homes plan shelved amid crunch
Leon Walker, Regen.net, 17 November 2008
Only five of more than 90 flat-pack Ikea-backed homes planned for a Gateshead scheme have been sold so far, and building will be halted when just over half of the proposed houses are complete, it has emerged.
There are currently 36 of the "Boklok" homes completed - five of which have been sold, and four of which are being rented - the developer confirmed.
A further 13 are close to completion after which time, building on site will come to a halt, developer Live Smart@Home has confirmed.
Ninety three of the low-cost homes were originally planned for the site, the developer confirmed.
"We've put the development programme on hold. It's just a delay until banks start lending money to first time buyers again," a spokesman said.
Bokloks are delivered to construction sites in a flat-pack style similar to Ikea's furniture, making them quick and relatively cheap to construct. The Gateshead development is currently the only UK site hosting the low cost homes, which are priced from £99,500 to £149,500.
The Swedish furniture designer developed the homes in conjunction with trained architects and develops housing scheme's with local partners across Europe.
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