Small flats are nothing new. But the spiralling cost of housing, which has pushed home ownership beyond the reach of many would-be first-time buyers, provides Barratt Homes with a fresh marketing angle for the launch of a new range of mini-apartments. Make way for the iPad — micro living for the MP3 generation.

Extending to just over 380 sq ft — about the size of three Land Rover Discoveries parked side by side — the iPad offers a living space, fully fitted open-plan kitchen, a separate double bedroom and a bathroom with a bath. Each iPad also has its own private balcony to tempt those who would otherwise be priced out of the property market.

First-time buyers are paying an average of £132,000 to get their foot on the housing ladder, according to the Nationwide building society. The new iPad will cost between £80,000 and £120,000 depending on the location. At this price, first-time buyers will also be able to avoid paying stamp duty, which is now charged on properties over £125,000, saving them thousands of pounds.

Despite the minuscule dimensions of the iPad, Barratt is keen to emphasise that they are “real homes” aimed at couples as well as singletons. The company says that the starter flats are the result of 18 months’ work and mark a break with the Studio Solo, an earlier offering of just 280 sq ft to 300 sq ft launched 20 years ago.

The iPad comes in three bright designs aimed at suiting different planners in various locations. The most innovative has a beehive roof and porthole windows on a brightly coloured façade. It is the sort of building you can imagine in the centre of town, while the more pared- down “neo” and “traditional” designs might be preferred in suburban or rural settings.

Although Barratt has only just announced the launch of the iPad, the company has already sold the 30 that are nearing completion on a site in Middlesbrough. The developer will be building 170 more on six further sites, including Sheffield and Hull. And there are plans for a further 1,600 more in 40 other locations including Leeds, Slough, Reading, Swansea and the Isle of Wight. Barratt expects to complete 250 iPads this year and next, and if all goes according to plan, the rate of construction should average 1,000 a year after that.

The need for new, reasonably priced and well designed homes is undeniable. But how does the iPad fare against the competition? John Prescott’s challenge to developers to build homes for less than £60,000 galvanised the industry into action. Now house builders big and small are keen to offer solutions to the plight of first-time buyers.

At the most affordable end of the spectrum, the Redrow Debut range was launched in Rugby last year with an initial price tag of £49,995. The smallest home, a studio, is just 279 sq ft. But the range offers other options. There is a larger studio at 350 sq ft; a one-bedroom property spread across a two-storey house at 418 sq ft; a two-bedroom, two-storey house at over 559 sq ft; and another two-storey house with two bedrooms and a study spread across 700 sq ft.

Homes are still available in Castle Vale, Birmingham (from £64,995, call 0845 6760292), Pavilion Lock, Hanley, Stoke-on-Trent (from £52,995, call 0845 6760280) and St David’s Park, Flintshire, Wales (from £59,995, call 0845 6760370).

For a more upmarket starter flat, there is the i-LiFE from David Wilson Homes. These start at £65,000 for a 300 sq ft studio flat and rise to £120,000 for a three-bedroom house. However, unlike iPads, i-LiFE does something genuinely innovative. The i-LiFE studio houses are inverted so that the living space is on the first floor above the bedroom. They come in two sizes — 378 sq ft (from £80,000) and 450 sq ft (from £105,000) but the layout means that the homeowner benefits from high ceilings, which not only gives the illusion of space but in some of the homes allows for extra storage space on a mezzanine level. These will appear throughout the country from Scotland down to Kent.

Down in Cornwall, a local developer is building “Surf Pods” in Newquay. Aimed at the weekend surfer, these start at £99,950. The studios are 330 sq ft, while the one-bedroom flat stretches to 540 sq ft, which is a lot larger, if potentially more expensive, than the offering from Barratt.

It is early days for the iPad. The first 30 have already been sold but it is debatable whether the next 1,600 will still be available at these prices. Given the demand for cheaper homes, something will have to give farther down the line. Figures from Nationwide show that property prices rose by £22 a day over the past 12 months. If prices continue to rise at this rate, will the builder push up the cost or shrink the flats?

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