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Ikea's affordable homes will soon arrive in the UK



Worthing, a city in South England, is considering a plan to work with entrepreneur BoKlok, a joint venture of Ikea and Swedish construction company Skanska.

Development will be the first BoKlok in the UK as the previous project fell during the global financial crisis. The group, whose Swedish name is "alive intelligent", has built more than 11,000 homes in Sweden, Finland and Norway. Through the construction of housing in the factory and their rapid assembly, the project can demonstrate one of the ways to alleviate acute housing shortages, which helps to raise prices until they are reached for middle workers. An innovative sales model that charges people based on what they can afford can cause further market change.

The Worthing proposal, which will undergo a tighter financial analysis in the coming months, describes an unusual model of affordable housing.

BOCKKOCK will build about 1

60 houses on land leased by the city council, with 30% of the units being allocated to public housing, according to a plan published online. The first homes could be occupied within two years.

The rest would work on the Boklok payment model, where residents will only receive a fee that they can afford after taxes and living costs.

Payments – usually about one-third of net monthly earnings – go to a 25-year mortgage.

  Presentation of Bocklock's development in Worthing, which can be opened in 2021

Local councilors said in a statement that the project would allow Worthing to quickly build homes to meet quality standards. A spokeswoman told CNN Business that Boklok's modular dwellings – or homes made from mounted sections that can be made outside the site – would be particularly useful in Worthing, which has limited land. Three times more homes can be built in the area than the traditional development approach, he said.

The construction will begin in January 2021, according to the proposal. Residents could begin to move immediately after April this year.

BOCKKOCK said in a statement that he can not confirm any projects at the time, but looks at potential sites in the UK, especially in

The influence of Ikea

BoKlok's Approach to Affordable and sustainable housing is largely based on Ikea's tried and tested methods.

"BoKlok is designed as an IKEA way:" Industrialized production and large volumes – in other words, repeating – reduce prices and save planning time. "

In addition, the plant controls its entire supply chain, including land acquisition , factory production, site work, sales and marketing, which helps to reduce costs, and BoKlok relies on timber to build homes and does not buy land unless it knows it can be developed soon

This efficiency has the potential to be profitable In 2017, BoKlok accounted for about half of Skanska's homes sold in Sweden, and the company said the risky venture received a "tremendous" return


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