A firm of architects has come up with an answer to the lack of low-cost housing in parts of Sussex - by thinking small.

Modar, based in Crawley, has designed a micro-studio for young professionals aiming to get a foot on the property ladder.

The modular studio is built off-site and comes in three sizes; a snug 32sqm, 48sqm or a slightly roomier 64sqm.

Its designers hope it will provide a solution to one of the biggest threats hanging over the future prosperity of the region.

Business leaders fear spiralling house prices could halt the Sussex economy boom, which has lasted for almost ten years.

If young people cannot afford to settle in the county, companies will find it increasingly difficult to recruit appropriately skilled staff.

Brighton and Hove is one of the most expensive areas to live in Sussex with an average one-bedroom flat now costing £130,000.

In contrast, a Modar unit would cost between £80,000 and £90,000, just within the price-bracket of a graduate on £20,000.

A recent study into the low-cost housing dilemma showed the city was struggling to hold on to its graduates beyond a few years.

It is estimated about 12,000 low-cost homes need to be built in the city to deflect serious problems further down the line.

Parts of Mid Sussex, around Horsham and Crawley, are equally expensive and face similar problems during the next decade.

Crawley is easily the biggest economic centre in Sussex, accounting for more than a third of the county's gross domestic product.

But last year house prices in the region shot up by 12 per cent and beyond the reach of many first-time buyers.

Many now believe more compact living quarters, which can fill space in high-density urban areas, are the way forward.

Modar managing director David Lumb said: "The volume of new houses is projected to increase rapidly over the next 20 years.

"The brunt of new demand will be felt in the South of England, where the population is predicted to increase by 13 per cent by 2021.

"We are looking at graduates who may not be what the government calls key workers but would nevertheless want to live in the city.

"These are people who are key to the economy. Students often spend three years in very small spaces and grow to like it.

"Rather than going back to live with mum and dad in their suburban three-bedroom house, they could have an affordable mortgage in a city.

"Off-site manufacturing presently accounts for just one per cent of the total house construction volume in the UK.

"Modar has recognised the potential for growth in this area."

Modar, a partnership between Design Group 3 Architects and manufacturer Pyramid Building Systems, will show its designs at the Interbuild 2004 exhibition in Birmingham later this month.

According to government predictions, an extra 3.8 million new homes will be required across Britain by 2016 to meet the increased housing demand.

Low-cost housing was identified by the Government as a key priority following the Barker report in December last year.

Tuesday April 13, 2004