Olympic village loses 600 flats in bid to cut bill

The cuts mean that lower-ranking Olympic officials will not be able to stay in the village and will now stay in West End hotels instead.

The 2,700 flats are likely to be reconfigured after the Games for maximum value on the open market. The new layout for athletes is expected to result in a squeeze on their accommodation compared with Beijing, where 14,500 athletes and officials lived in 3,276 flats.

Most athletes lived in two and four-bedroom apartments while some enjoyed the luxury of their own flats. Plaudits for the Beijing village came from Britain's chef de mission Simon Clegg, who said it had "raised the bar", and International Olympic Committee president Jacques Rogge who described the complex as the "best ever".

Cutbacks in the size of the village have been achieved by mothballing plans for four high-rise blocks. The ODA has applied for planning permission but the flats will not be built until after the Games and will become part of the second phase of residential development which is estimated to cost £3.5bn and be completed in 2020.Medium and low-rise flats have taken priority because they are more adaptable to athletes' needs. Games chiefs have pledged that athletes will not have to live above the ninth floor to avoid them having to traipse upstairs.

Cost-cutting changes are being made by the ODA with the organising committee, Locog, which will have to seek approval from the International Olympic Committee. Locog has guaranteed that there will be a bed in the village for every athlete even those who wish to come to Stratford once their events have ended in outlying venues.

An ODA spokesman said: "We have been reviewing the scope of the Olympic Village to ensure we only build what is necessary for the Games while ensuring we meet IOC requirements."