THE country’s first development of Ikea houses has fallen flat with buyers.

The flat pack development in Gateshead was conceived two years ago as the answer to the UK’s housing shortage.

It was hoped the Ikeadesigned BoKlok houses and flats would provide affordable and ecological properties, but the plans have been hit by credit drying up and the collapse of the housing market.

Twenty of the 36 apartments built in St James Village, in Felling, Gateshead, remain unoccupied.

And while six of the terraced homes, costing between £132,500 and £149,500, have been reserved, the company behind the development, Live Smart Home, has turned to a range of incentives, worth up to £5,000, to encourage wouldbe home owners to commit.

People who reserve their home by Sunday, and complete the sale by the end of March, will be able to claim a package of incentives including bikes, garden accessories and free travel on the Tyneside Metro system.

Those who buy the first 13 apartments will receive a year’s gym membership for two and a family holiday, and their legal fees will be paid.

John Hanson, of Live Smart Home’, said: ‘‘With interest rates falling further and with the incentives we are offering, we are hopeful that all the houses will be sold fairly quickly.’’