Swedish furniture giant Ikea wants to put up hundreds of pre-fab homes in the UK and says the first locations are likely to be Edinburgh, Gateshead, Brighton and the New Forest.

In a joint operation with BoKlok who has put up similar homes across Scandinavia, Ikea plans to introduce the homes with a starting price of £70,000.

"Subject to site acquisition and planning consent, we hope to start on site in the autumn 2005 and have the first homes ready for occupation in spring 2006," said BoKlok UK, a partnership of Paramount Homes (a subsidiary of Home Group) and The Hyde Group, working together with IKEA.

BoKlok customers will primarily be working people and young families who have been priced out of the open market. They are likely to be first time buyers with household incomes of £12,500-£30,000.

BoKlok, literally translates as ‘live smart’. It’s about design quality and value for money, says the company, who say they are offering space-saving, functional homes at a price which enables as many people as possible to afford a comfortable home.

Decoration and furniture would be chosen by the purchasers from the Ikea range on-line.

The current proposals are all for flats and the interiors are cleverly designed with a flexible open-plan layout, high ceilings and large windows, giving the apartments a light airy, contemporary feel.

BoKlok is currently developing flat-pack villas in Sweden, which could eventually be introduced in this country.