The government has secured a major deal to bring military housing back into public ownership, aiming to improve living conditions for Armed Forces families and save taxpayers billions over
the next decade.
Key highlights of the deal:
Ending Expensive Rental Costs: The deal eliminates an annual rent bill of £230 million, saving taxpayers over £600,000 daily.
Home Ownership Reversed: 36,347 military houses, sold in 1996, will be repurchased for £5.99 billion, despite their current value being £10.1 billion—a significant gain for taxpayers.
Investment in Housing: The move will allow for vital redevelopment, refurbishment, and the construction of new homes for military families.
Addressing long-standing issues
This agreement marks a “decisive break” from the failed policies of the past, according to Defence Secretary John Healey. Military families have long faced poor housing conditions, including damp and mold, stemming from decades of underinvestment.
Healey described the deal as a “once-in-a-generation opportunity” to address these problems, improve military morale, and support recruitment and retention efforts. The move will also contribute to the government’s goals of boosting economic growth and housebuilding nationwide.
A strategic milestone for military housing
The Ministry of Defence (MOD) can now begin:
Rapid Redevelopment: Upgrading existing properties and accelerating the construction of new homes.
Modern Housing Projects: Immediate plans include 265 new homes at RAF Brize Norton and 300 new homes at Catterick Garrison in early 2024.
Improved Sustainability: New homes will incorporate energy-efficient features, like low-carbon heating systems and solar panels, as seen at Imjin Barracks in Gloucestershire.
Financial and social impact
The deal corrects the imbalance caused by the 1996 sale, which saw 55,000 homes sold for just £27,000 each on average. Over the years, taxpayers have lost nearly £8 billion, primarily through rental costs and maintenance liabilities.
The agreement now allows the MOD to:
- End wasteful spending on empty properties (18,000 since 1996, worth £5.2 billion).
- Avoid paying inflated rents when refurbishing houses.
- Regain control to demolish or rebuild outdated properties.
Chief of the Defence Staff, Admiral Sir Tony Radakin, emphasized that housing quality plays a crucial role in supporting military families and retaining personnel. He called the deal a “significant and welcome” step toward providing the homes Armed Forces families deserve.
Long-term vision
The government will publish a new military housing strategy next year, focusing on:
- Generational renewal of housing.
- Increased opportunities for home ownership for military families.
- Better use of MOD land to deliver affordable homes.
This initiative aligns with the Homes for Heroes pledge, which exempts veterans from local connection rules when applying for social housing.
The repurchase of military housing marks a turning point in improving Armed Forces accommodation, saving billions for taxpayers, and renewing the nation’s commitment to those who serve.
Defence Secretary, John Healey MP, said:
“This deal shows our government is determined to deliver homes fit for our heroes. This is a once in a generation opportunity, not only to fix the dire state of military housing but to help drive forward our economic growth mission, creating jobs and boosting British housebuilding.
Our armed forces and their families make extraordinary sacrifices: theirs is the ultimate public service. It is shameful that in the lead up to Christmas, too many military families will be living with damp, mould and sub-standard homes – issues which have built up over the past decade.
We are determined to turn this around and renew the nation’s contract with those who serve. These important savings to the defence budget will help fix the deep-set problems we inherited. I thank the teams who have helped us reach this landmark deal at pace – another example of this government delivering for defence.
There is still a lot of work to do to deliver the homes our military families deserve, and these problems will not be fixed overnight. But this is a decisive break with the failed approach of the past and a major step forward on that journey”.
Chief Secretary to the Treasury, Darren Jones said:
“This is a landmark deal that will start saving the taxpayer money immediately, all while driving forward our mission to create growth across the country.
Not only does it open the door to major development and improvements across the military housing estate, but most important of all, it will help us on our mission to build more houses and deliver our service personnel the homes they deserve”. Photo: Harland Quarrington/MOD, Wikimedia commons.