Incentives to buy flat pack homes (From Middlewich Guardian)

Incentives to buy flat pack homes

11:13am Tuesday 27th January 2009

THE country’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 the Ikea-designed BoKlok houses and flats would provide affordable and ecological properties, but the plans have been hit by credit drying up and the collapse of the housing market.

Twenty of the 36 apartments 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, has turned to a range of incentives, worth up to £5,000, to encourage wouldbe home owners to commit.

John Hanson, of Live Smart@ Home, said: ‘‘With interest rates falling further and with the incentives we are offering, we are hopeful that all the houses will be sold fairly quickly.’’

Live Smart@ Home has developments close to city centres including Leeds, Newcastle and Edinburgh.