Is the smart house set to take-off?

However, the Integer house - and other pilot and demonstration projects - have shown what is already possible and indicated that prices have reduced substantially. Maybe not yet within reach of a mass market, but not just toys for the mega rich.

One problem is that the new homes market is too small to achieve the levels of mass production that will cut product prices sufficiently and encourage housebuilders to include smart features. But if the kit can be retro-fitted to existing homes, the market expands dramatically and breakthrough may be achieved.

This was partly behind the Joseph Rowntree Foundation's thinking when it fitted out a simple terrace cottage on its New Earswick estate in York three years ago. The cottage has been packed with every conceivable device. It starts at the front door with an entry system that can be operated from an armchair or even by internet or mobile phone at a remote location.

On the inside doors, windows and curtains can be opened and closed automatically, baths can be programmed to fill themselves and the kitchen sink can be raised and lowered to suit the height of the user.

Many of these devices operate 'intelligently': sensors, which detect changes in external climate conditions such as high winds, can be programmed to close windows; doors re-open if they hit an obstruction.

Twenty years ago, the thinking was that this technology would require separate wiring systems using special cables for the control systems, but the introduction of X-10 technology which uses existing electrical wiring, reduced the potential cost. New wireless technology using protocols such as Bluetooth - which have been developed for computer systems - provide other highly cost effective alternatives.

The other side of the coin is the equipment. As the JRF trial found, the gear is often bulky and, it has to be admitted, unsightly. Much of it was originally developed for commercial purposes: in offices and shops it can be hidden in ceilings or other voids, where there is no requirement for aesthetic appeal.

Another aspect is the interest of manufacturers. Corporations such as Electrolux and LG include microchips in their products, which can be linked to networks and thus provide intelligent kitchens, while home entertainment equipment is already easily integrated. Sun and Microsoft have software applications under development, which are designed to "recognise" new components as they are added to networks and to integrate them.

But in the end, it will come down to what the customer wants. JRF has also carried out research with the Consumers Association to assess interest. Among the findings were concerns that such smart systems might fail, be difficult to control and be too complex - the JRF smart house already responds to these issues as all devices are designed to be manually over-ridden, and the software allows simple programming.

But the research also highlights one real concern that smart technology can help combat: the highest rating for the benefits came from the 70% who valued safety and security features.

It is perhaps significant that the most developed market in smart technology for the home is security systems. It is already possible to install at reasonable cost, alarm and detection systems, which can be linked to remote monitoring centres or mobile phones. Many companies already offer annual inspection and emergency call out services.

This could hold a key to both concern about security and the reliability of the systems. Richard Best, director of JRF, believes there is a real opportunity for security companies to play a role. "With their expertise in technology, they could extend to cover all aspects of smart technology in the home," he says. "I am sure people would be willing to pay annual fees for the peace of mind that emergency call out and servicing could provide."

Many people will find some devices luxuries they can do without. But the beauty of the technology is that you can add new features at a later date.

JRF is now extending its role with further demonstration projects and incorporating smart technology into new bungalows at New Earswick. In June it will be publishing user and specifier guides (with listings of manufacturers and products available).

So where does the future lie? The jury is still out - not on whether the technology will become commonplace, but when. The Consumers Association research showed that there is still a general lack of enthusiasm among construction and property companies, manufacturers and suppliers to push the technology. There is a lack of common standards, an inappropriately skilled workforce, and there is still a faddish element to demand.

On a brighter note, there is growing public interest, with features on smart technology for the home appearing weekly in the national press, and there are demonstrator homes in most parts of the country. E-commerce minister Patricia Hewitt recently announced a £70m government spending programme to stimulate smart technologies.

Speculative developers are commissioning small but significant smart home pilot schemes on many estates, and consultants report that their workloads are increasing. One of these is Colin Taylor who is masterminding JRF's work.

It seems likely that the cynics have had their day, just as they did with mobile phones and computers in the home.

It doesn't seem unreasonable to speculate that if housebuilders fail to offer smart technology within the next three to five years - even if only as an optional extra - they could well be at a commercial disadvantage.

The report, The potential market for smart homes is available price £10.95 from York Publishing 01904 430033 or orders@yps.ymn.co.uk