In a landmark move aimed at righting a decades-old wrong, the Ministry of Defence (MOD) has reacquired 36,347 military homes in a £5.99 billion deal that promises better living conditions for military families and significant savings for taxpayers.
This bold step reverses the controversial 1996 sale of military housing, which saw 55,000 homes sold at an average price of just £27,000 each. The fallout from that deal has cost taxpayers nearly £8 billion over the years, as the MOD continued paying rent while shouldering costly maintenance responsibilities.
Now, with this historic reacquisition, Defence Secretary John Healey says the MOD is turning the page on a “failed approach of the past.”
“A Once-in-a-Generation Opportunity”
“This is a decisive break,” Healey stated. “Not only to fix the dire state of military housing but also to drive forward our economic growth mission creating jobs and boosting British housebuilding.”
The reacquisition is expected to save £230 million annually in rent payments and deliver immediate savings of £600,000 per day. It also frees up resources for large-scale redevelopment projects, enabling the MOD to focus on upgrading outdated homes and building new, energy-efficient housing for forces families.
Fixing Decades of Neglect
For years, reports of damp, mould, and substandard conditions in military housing have plagued the MOD, leaving many families living in unacceptable conditions. Under the 1996 agreement, any significant upgrades risked increasing rental costs, effectively tying the MOD’s hands.
Healey acknowledged these challenges: “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.”
With the deal now finalised, the MOD is fast-tracking plans to improve military housing. This includes building 265 new homes at RAF Brize Norton and 300 homes at Catterick Garrison, with planning applications already in progress.
A Deal That Delivers Immediate and Long-Term Gains
The reacquisition represents a significant bargain. The current market value of the properties is estimated at £10.1 billion, meaning the MOD’s deal delivers the homes for almost 40% less.
Beyond financial savings, the initiative will also:
- Modernise existing homes with energy-efficient upgrades, reducing costs for families.
- Address urgent issues like damp and mould.
- Boost the MOD’s housing stock, ensuring service personnel and their families have access to safe, modern accommodation.
Admiral Sir Tony Radakin, Chief of the Defence Staff, welcomed the move as a “crucial step” in delivering meaningful change. “Housing provision is a constant part of life for Service Personnel and their families,” Radakin said. “This deal gives us the ability to make real improvements that reflect the sacrifices made by those who serve.”
Looking Ahead
While the reacquisition is a step in the right direction, it also signals a broader ambition to create a more sustainable, family-friendly military housing network. The MOD’s plans to focus on energy efficiency, large-scale redevelopment, and building new homes highlight a commitment to addressing long-standing issues in military accommodation.
For forces families, the message is clear: better days are ahead.
