STEEL granny flats could be the answer to the challenge of housing the elderly.

A design-and-build specialist firm in Goudhurst believes it can build on its reputation for sports halls and warehouses to create cheaper but good accommodation for pensioners wanting to live near their families.

Duncan Murray and his wife Jennifer, founding directors of Directline Structures Group, are going for growth and believe smaller structures are one way this can be achieved.

The group, founded in 1988, has already designed and installed a photographic studio in a back garden and believes the steel concept can help solve the challenge of an ageing population.

"Yes, we could do it," Mr Murray said. "A granny flat does not have to be built of bricks."

He points to the slow but gradual acceptance that homes can be made of steel. There was no reason why some of the thousands of homes being built across Kent in the next 20 -30 years should not be constructed from steel and embellished by a brick fascia.

He says the battle of steel versus concrete was ended years ago. But he recognises that house-builders and buyers are a conservative bunch and may be slow to abandon any lingering prejudice against steel.

Mr Murray and Keith Dexter, the business development manager, are keen to lose the "tin shed" taunt. "It doesn't have to be a boring shed," insists Mr Murray.

They want to lose the perception that "if it's not got bricks, it's not a proper building”.

Several schools and colleges in Kent and beyond have found that steel makes an ideal sports hall. Bedgebury School, Kent College Pembury, South Kent College in Folkestone and Bennet Memorial School in Tunbridge Wells have been clients.

Directline built Cloverlay Industrial Park, Rainham, a car showroom for Top Gear in Gillingham, and a warehouse for RS Sales in Staplehurst. It has also completed factory projects, golf clubs and offices.

They found that steel buildings could be around 20 per cent cheaper than traditional brick or concrete. Buildings can be delivered from the factory in Luxembourg within eight weeks of order.

Mr Murray identified the potential for steel buildings in Kent and the South East when he forged a relationship with Astron Buildings in Luxembourg, a division of the American giant Parker Hannifin.

"We've been able to push the boundaries to get the benefits of a standardised approach but customising crucial elements and enhancing the building to meet individual wishes," he said.

Directline employs 12 staff, including four graduates. The Murrays have always tried to recruit well-qualified people.

Company turnover was £4m last year but the firm aims to increase this to £10m over the next few years.