Ikea flat pack home sales fall amid mortgage lender caution

Caution among mortgage lenders has led to a drop in sales for Ikea’s new flat pack home.

A new development of the homes, known as Bokloks was officially opened in Gateshead yesterday, however few people have committed to buying the properties.

There are 93 properties in the Gateshead development, but 12 still remain unsold despite massive publicity for the project.

The homes built by Swedish retailer Ikea and construction firm Skanska have been viewed as a solution to the government's target of 3 million new properties by 2020

Contraction in the mortgage market and lenders unwillingness to lend money for these new buildings have been cited as the main reason for low sales, the Financial Times reported.