SWEDISH furniture giant Ikea is negotiating to build a "flat pack village" in the New Forest to ease the shortage of affordable housing according to reports.

The company is said to have identified the area as one of four in the UK in need of accommodation for working people and young families who have been priced out of the housing market.

It has not revealed where in the New Forest it wants to build, but subject to planning permission, it hopes to begin work on the first BoKlok homes this autumn and have them ready for occupation next spring.

The concept behind BoKlok - literally "live smart" - was developed in Sweden by Ikea and Skanska. The homes are prefabricated and are bolted together on site in a few weeks, then kitted out with Ikea furniture.

The new villages are likely to contain about 500 low-rise flats, starting at £70,000 each, aimed at buyers with a household income of between £12,500 and £30,000. People could also be given the option of renting.

BoKlok UK is a partnership between Ikea and of the largest two housing associations in the UK, the Home Group's division Paramount Homes and the Hyde Group.

New Forest MP Desmond Swayne expressed scepticism about the BoKlok scheme: "I don't like the sound of it, but it's a matter for the district council," he said.

"It doesn't matter whether houses are made out of Lego: what's gone wrong with the planning system is the guidance on density imposed on planning authorities"

First published: August 30