A landmark agreement has been reached to bring thousands of military homes back into public ownership, marking a significant shift in the government’s approach to military housing. The £5.99 billion deal will end an arrangement that saw taxpayers footing a £230 million annual bill for military housing rentals and maintenance.
Under the terms of the deal, the Ministry of Defence (MOD) will reacquire 36,347 properties from Annington, the company that originally purchased them in 1996. The deal will see the properties, which are now valued at £10.1 billion, bought back at a substantial discount, creating savings that will be reinvested into improving housing for military families. This move is expected to save the taxpayer more than £600,000 per day, providing a vital boost to the defence budget.
The sale of the properties in 1996, which saw 55,000 homes sold for an average price of just £27,000 each, has been widely criticised for failing to strike a fair balance between risk and reward. Since then, the MOD has been burdened with rising rental costs, maintenance responsibilities, and the obligation to hand back thousands of properties to Annington. Estimates suggest the government lost nearly £8 billion in the years since, as a result of this decision.
The Defence Secretary, John Healey, described the deal as a “decisive break” from the past, aiming to reverse the long-term decline in military housing. “This is a once-in-a-generation opportunity to fix the state of military housing and ensure that our armed forces get the homes they deserve,” he said. “For too long, military families have lived in sub-standard conditions, and this deal is the first step in changing that.”
The agreement will not only address longstanding housing issues but also help to kick-start the government’s wider housing strategy for the armed forces. Key elements of this strategy will include the construction of new homes, opportunities for homeownership, and a commitment to improving the quality of housing for service families. Already, planning applications for 265 new homes at RAF Brize Norton and another 300 at Catterick Garrison are being prepared.
This move also aligns with the government’s broader commitment to boosting housebuilding across the UK and supporting the economy. The deal is part of a wider effort to improve military morale, retention, and recruitment by providing better living conditions for service members and their families.
Admiral Sir Tony Radakin, Chief of the Defence Staff, welcomed the deal, calling it a vital step in providing service personnel with higher-quality housing. “This agreement will allow us to regain control of the estate and move forward with essential redevelopment, providing our armed forces with the homes they deserve,” he said.
The government’s efforts to address military housing have also been accompanied by a series of reforms, including a significant pay rise for armed forces personnel and measures to simplify the recruitment process. The MOD will continue to work on redeveloping and modernising the housing estate, with the ultimate goal of delivering sustainable, high-quality homes for the military community.