Advertising helps fund Big Issue’s mission to end poverty
Housing

Ikea to build affordable housing to combat high rents

Swedish furniture giant Ikea will build 36 flats to show it is possible to build genuinely affordable homes

They make your bookcases, bed, lamps, lights and sofas, so why not go ahead and let them build you a home too? Swedish furniture giant Ikea has announced it is building its own apartment block in the Icelandic capital Reykjavik.

The 36 flats will be set aside for Ikea employees, but the company CEO has said he wants to combat high rents in Reykjavik and demonstrate that building genuinely affordable housing is possible.

The new flats will be cheaper than what a lot of people are paying to live in a dump, says the company’s CEO

To be constructed and fully furnished (the easy bit) by next summer, the lowest rents for apartments at the Ikea development will be set around 100,000 krona – £716 – each month. “That’s much cheaper than what a lot of people are paying (to live in) a dump,” said Thorinn Ivarsson, the company’s CEO in Iceland.

No doubt many Ikea employees in the south of England would welcome that sort of rent level. The Big Issue has previously examined the legacy of philanthropic and workers’ housing built in the UK during industrial era end of the 19th century and beginning of the 20th century.

Today, some of the big banks in the City and Canary Wharf are known to provide flats for employees. The Armed Forces have continued to build plenty of accommodation for military personnel. But few of the UK’s biggest employers or most successful companies now feel the need to make sure their workforce has somewhere affordable to live.

Perhaps more big firms should consider the Ikea scheme. Their muscle might just help disrupt the cartel-like control held by small number of major developers over land acquisition and new housebuilding.

Advertising helps fund Big Issue’s mission to end poverty
Advertising helps fund Big Issue’s mission to end poverty

If you know of any interesting worker accommodation projects, let us know editorial@bigissue.com or @BigIssue.

Advertising helps fund Big Issue’s mission to end poverty

Do you know how Big Issue 'really' works?

Watch this simple explanation.

Recommended for you

View all
Andy Burnham wants to end rough sleeping. These new statistics show the challenge he faces
Andy Burnham volunteering at London homelessness charity The Passage on the day he was named prime minister
Homelessness

Andy Burnham wants to end rough sleeping. These new statistics show the challenge he faces

'I ended up on the streets for about 16 months. I wasn’t bedding down, I was taking buses at night'
London Big Issue vendor Simon Denis
Housing

'I ended up on the streets for about 16 months. I wasn’t bedding down, I was taking buses at night'

The horrific state of our social housing is a stain on the nation. There's only one way to fix it
Social housing
Social housing

The horrific state of our social housing is a stain on the nation. There's only one way to fix it

Revealed: One in every 21 people sentenced over 2024 riots was experiencing homelessness
Anti-immigration protesters confront riot police in Manchester in 2024 riots
Homelessness

Revealed: One in every 21 people sentenced over 2024 riots was experiencing homelessness