A Swedish municipality has hit back after it was criticized for offering a man and his three wives housing in apartments bought for more than 13.9 million kronor ($1.75 million) in total.

Nacka municipality hit back at claims spread by the local branch of the anti-immigration Sweden Democrat party that it had bought three bostadsrätter (a type of private housing cooperative which is a common form of home ownership in Sweden) in Saltsjöbaden for the man and his three wives.

"Nacka municipality has not purchased housing for any individual. The municipal's purchase of bostadsrätter is part of the work of arranging housing for new arrivals with a residence permit," it wrote in response to questions raised over the rumours.

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