The first UK development of BoKloks, prefabricated housing pioneered by Swedish retailer Ikea and construction company Skanska, was officially opened yesterday in Gateshead.

However despite the publicity the project has garnered, 12 out of the 93 properties in the development haven’t been sold.

The contraction in the mortgage market and the cautious mood among lenders has been blamed for the low sales.

BoKloks cost £99,500 for a one-bedroomed flat and £124,500 for a two-bedroomed flat. 60% of the buyers have had to opt for part-purchase - a shared equity arrangement, acquiring 50 to 75% with mortgage funding, while Live Smart@Home holds the remainder.

BoKloK was first pioneered in Scandinavia by IKEA and Skanska. In the UK, property company Live Smart@Home, the commercial subsidiary of affordable housing provider Home Group, has the exclusive licence to build BoKlok properties.

The BoKlok properties have a flexible open-plan layout, with high ceilings and large windows. They meet or exceed all current UK building regulations, as well as being designed to have an eco-homes excellent rating.

A second development is expected to be built in Sunderland.

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