The Ministry of Defence has signed a deal with Annington to repurchase 36,347 houses for military use, reducing rental bills and unlocking housebuilding projects for military families
The military housing buyback deal will bring the service family estate back into public ownership, having been sold to Annington in 1996.
The deal will see the MoD pay £5.9bn for a value of £10.1bn.
The deal will save £230m per year in rent
The money saved in the deal can be reinvested into the homes themselves, enhancing them for military families, as well as saving taxpayers money.
The homes will also be opened up to the MoD’s acknowledgement of the huge investment that military homes require to be modernised, with many being unfit for living.
The government is now working on a new military housing strategy for publication next year, with key principles including a full renewal of Armed Forces accommodation, new opportunities for home ownership within the forces, and improving the use of MoD-owned land to support affordable homes for families throughout the nation.
The MoD military housing buyback will enable improvement work
The MoD now plans on beginning redevelopment and improvements in all military housing, creating a modern estate, reducing maintenance costs, and building new houses.
In the near future, planning applications are being submitted for 265 new homes and apartments at RAF Brize Norton, along with a future 300 houses at Catterick Garrison.
Imjin Barracks, Gloucestershire, has seen 176 new modern homes built, which include low-carbon heating and solar panels.
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.”
