Tesco's failure to persuade the people of Tolworth of the merits of a superstore could be the cue for a village of flatpack box-like homes to ease the housing demand crisis.

YMCA London South West, based in Surbiton, is in talks with Kingston Council about introducing the small 26 square metre units, designed by architect Richard Rogers, somewhere in the borough. The site at Tolworth, which has been empty since it was bought from the Ministry of Agriculture, Food and Fisheries in 2002 would be one of the dream homes for the portable, stackable Y-cube homes.

The portable homes look like shipping containers and are a tight 26sq m unit. They have a lounge, kitchen facilities and bedroom with ensuite bathroom. The charity says they are a cost-effective alternative for poor and homeless people who cannot afford to buy or rent privately. A prototype of the Y:Cube is currently outside YMCA Wimbledon, with plans for the first Y:Cube housing scheme comprising of 36 units to open in Mitcham by the end of this year. Andy Redfearn, YMCA director of development, said the charity had held talks about bringing a scheme to Kingston – with the former Ministry site in Tolworth mooted as a potential site.

Tesco withdrew an application for a supermarket, hotel and 269 flats on the site next to the A3 earlier this month – the third time since 2002 it had scrapped plans following opposition from councillors and the public. The supermarket giant has now ditched its supermarket plans altogether, and promised to create a residential-led development that would make a “major contribution to Kingston’s housing needs”.

The Y:Cube has been designed by architects Rogers Stirk Harbour and Partners, and will be offered to single people who are former YMCA residents or on the waiting list for a council home. Each timber-made unit is constructed off-site, and can be stacked side by side or on top of each other – meaning whole developments could potentially be taken apart and relocated if needed. At an estimated £70,000 a unit, the Y:Cube is cheaper to build than other housing developments, and each unit will be let at 65 per cent the normal market rent. The prototype outside Wimbledon YMCA will be open to the public on Thursday, April 3, from 10am to 2pm.