Ikea homes development falls flat

The UK's first development of Ikea houses has fallen flat with buyers.

The flat pack development in Gateshead was conceived two years ago as the answer to the UK's housing shortage.

It was hoped that a terrace of Ikea-designed BoKlok houses and flats would provide affordable and ecological properties.

But the plans were hit by credit drying up and the collapse of the housing market.

Twenty of the 36 apartments that have already been built in St James Village, in Felling, Gateshead, remain unoccupied.

And while six of the terraced homes, costing between £132,500 and £149,500, have been reserved, the company behind the development, Live Smart Home, have turned to a range of incentives, worth up to £5,000, to encourage would-be home owners to commit.

People who reserve their new home by January 25, and complete the sale by the end of March will be able to claim a package of incentives including new bikes, garden accessories and free travel on the Newcastle Metro system.

And those who buy the first 13 apartments will also receive a year's gym membership for two people, a family holiday and their legal fees will be paid.

The company admitted the package was designed to "entice" buyers in light of the credit crunch.

John Hanson, Live Smart Home's operations director, said: "We acknowledge the credit crunch has made it difficult for our target market to obtain a mortgage.

"With interest rates falling further and with the incentives we are offering, we are hopeful that all the houses will be sold fairly quickly."

In total, five apartments have been sold at the St James Village development, seven are being rented and four people are on Live Smart Home's Try Before You Buy scheme.

The scheme was introduced in November to try to boost sagging sales figures. It allowed potential buyers to rent a home for up to six months, and then get their rent payments back to use as a deposit on buying the house, to try to boost sagging sales figures.

BoKlok homes were designed in Sweden in the mid-1990s to address the need for affordable properties, and to provide people with high-quality properties at a low price.

The BoKlok concept is to provide space-saving, functional homes offering good quality at a price which puts them within reach of households earning between £12,500 and £30,000 a year.

Discover more property articles at Homes and Property
PROMOTED VIDEO
Sport
Chelsea manager Jose Mourinho
footballThe more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Life and Style
Vote green: Benoit Berenger at The Duke of Cambridge in London's Islington
food + drinkBanishes thoughts of soggy school dinners and turn over a new leaf
News
Joel Grey (left) poses next to a poster featuring his character in the film
peopleActor Joel Grey comes out at 82
News
i100
News
business
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Ashdown Group: Marketing & Sales Manager

£40000 per annum: Ashdown Group: A reputable organisation within the leisure i...

Tradewind Recruitment: Science Teacher

£90 - £140 per day: Tradewind Recruitment: I am currently working in partnersh...

Recruitment Genius: Doctors - Dubai - High "Tax Free" Earnings

£96000 - £200000 per annum: Recruitment Genius: Looking for a better earning p...

Recruitment Genius: PHP Developer

£32000 - £36000 per annum: Recruitment Genius: A rapidly expanding company in ...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee