Prototype factory-built house could be ready by autumn

The plan, being led by multi-disciplinary consultancy Ove Arup would involve a partnership between associations, housebuilders and developers to pilot a revolutionary £5m factory to begin production by 2001.

According to Ove Arup the factory could produce up to 1,000 units a year, but would be economically viable if it only made 500.

Ove Arup director John Miles said: "We have come up with a solution based on production engineering which approaches the problem as product design rather than construction. Other industries take this approach - it is time the construction industry did the same."

Although "several" associations were involved, no names could be mentioned, as contracts had yet to be signed. If the pilot proved a success, a national network of factories would be established, he added.

Factory production was a cornerstone of Sir John Egan's construction taskforce report last year. One of the main problems identified was the cost of rectifying construction mistakes in new build housing.

In February, the Housing Corporation signalled that all £650m of the quango's annual development funding would be 'Egan compliant' within three years (Housing Today 122).

Only one other factory currently uses the same processes - Yorkon in York, which built 30 units for Peabody Trust's Murray Grove scheme in north London (Housing Today issue 131). But Yorkon does not build houses and has no plans to do so.

Home housing group director of business strategies Jon Watson said he would be interested in developing the idea but warned: "It would need to be very detailed, very considered and would involve a major rethink of management systems."

National Housing Federation Policy officer Abena Nsia said: "If this initiative helps RSLs build better homes more quickly, then it will be a positive step in achieving Egan compliance and in modernising housebuilding practices."

A prototype house should be ready by the autumn.