IKEA to build low cost homes

Fancy a flat-pack home? Up to 162 new factory-built homes could soon be constructed in Worthing if a deal between the council and an affordable housing developer co-owned by IKEA goes ahead.

The properties, from developer BoKlok, which is owned jointly by IKEA and construction company Skanska, will be priced so that buyers still have enough to live on once they’ve covered housing costs.

BoKlok has already built 11,000 homes across Norway, Sweden, Denmark and Finland. It also constructed several properties in Gateshead, Tyneside prior to the credit crunch and is currently looking at other areas of the UK for potential sites for BoKlok developments.

Help for those struggling to buy

Nearly a third of the homes (30%) built in Worthing will be used for social housing in areas where house prices are steep and there are a limited number of homes available.

The remaining 70% will be sold off, giving those who might not otherwise be able to afford to buy an opportunity to get onto the property ladder. The first homes could be ready as soon as January 2021 if building starts next September.

According to ONS data, property prices in Worthing are 11.7 times higher than average salaries. Across England and Wales, house prices are 7.8 times average salaries.

About the properties

There are currently few details about how the properties will be constructed or what they will be made of, although homes will be fitted with an Ikea kitchen.

Lenders are typically happy to lend on properties of standard construction, which means brick or stone walls and a slate or tile roof.

If properties are made out of something ‘non-standard’ however, such as concrete or steel, then lenders may be more wary. Much will depend on the comments of the surveyor, and different lenders will have different criteria.

It’s worth seeking expert advice on which may be more likely to offer you a mortgage.