The great folks from Red Carpet Tours ( have sent along this report and imagery from the Hobbiton set nearĀ Matamata, New Zealand:

At last – work on the set at Hobbiton is under way in earnest ! A team of 60 people have begun building Hobbit holes. Three of those under construction are new and rather large. Does that mean we’ll be able to step inside them? Check out the photos below.

Click an image for a larger version