Various plans and policies have been adopted by the Iranian Government to address the housing shortages in Iran. Some of these policies have been successful and some have failed dramatically deteriorating the housing conditions. Technology transfer from other countries, such as the UK, may facilitate industrialisation which has been recognised as an effective way to address housing deficiencies in Iran. The Iranian and UK construction industries, however, differ in various respects which may increase the risk of failure if transferred technologies are not adapted to Iranian needs and conditions. This paper compares the current conditions of the Iranian and UK construction industries to identify the risks and opportunities if Modern Methods of Construction (MMC) were to be transferred from the UK to Iran. Several issues such as demand and supply, regulations and standards, practicality, costs, design, sustainability, and governmental policies have been studied in detail. The results reveal that MMC could potentially improve the housing conditions in Iran by addressing major issues such as skilled labour shortages, energy and materials wastes, building quality and speed of construction. The major risks are also identified as volatile economy and housing market, transportation and industry capacity. The chance of successful adoption is considerably higher for those MMC that are suitable for small projects, do not require highly skilled labour and heavy machinery, and are compatible with prevailing methods of construction in Iran.