Brighton-based OSM, set up by Hans Kohl and property developer David Craddock, will import German-made homes from its manufacturing partner Streif GmbH. It will focus on the development market but can also fulfill self-build orders.

OSM’s first building project, to start in January 2007, will comprise 18 houses and six flats in Lewes for developer Blue Sonic. A number of other projects are also in the pipeline.

“On the one hand we have the technology and quality of the Germans, and then we have the knowledge of the English market,” said Mr Kohl.

OSM’s closed timber panel construction is designed to have 70% of the house produced in the factory. Structural panels include lining materials, thermal and acoustic insulation, built-in electrical ducting, windows and front door.

Streif, which has built more than 75,000 homes in the last 77 years, will erect the house structure and second-fix will be completed by UK contractors, though a turnkey package is also offered by OSM.

OSM’s long-term aim is to establish facilities in the UK to ensure the successful transfer of German offsite manufacturing technology.

“Offsite manufacture will make a major contribution to improving and expanding the nation’s housing stock by building sustainable communities for the future,” said Mr Craddock.