The UK’s Ministry of Defence (MoD) has agreed to a £6bn ($7.59bn) deal to bring more than 36,000 homes back into public ownership, marking a major shift in domestic military housing management.
This strategic move is set to revitalise the UK Armed Forces estate by initiating new-build housing projects for military families and essential refurbishments.
The ministry in 1996 sold 55,000 properties under the Married Quarters Estate to Annington for approximately £1.67bn, which equated to approximately £27,000 per house.
This was part of a larger privatisation initiative of state assets, making Annington the most extensive residential property owner in England and Wales.
The repurchase allows the government to manage properties whose worth has increased nearly tenfold and cease annual rental payments of £230m.
The savings from this deal aim to address “deep-set problems” within the country’s military housing sector.
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By GlobalDataThe repurchase is a step towards improving the long-term housing conditions for military families and aligns with the government’s goals for economic growth and increased house building.
The deal concludes a costly arrangement for the taxpayer, which involved billions in rent for military housing, alongside escalating maintenance costs and the return of valuable military properties, stated the ministry.
The government is also initiating a new military housing strategy, set to be released next year, focusing on a generational renewal of Armed Forces accommodation, homeownership opportunities for members of the forces, and efficient utilisation of MoD land to provide affordable homes.
An action plan to capitalise on the opportunities from the repurchase is underway, with contributions from independent experts, forces families, and cross-government collaboration.
The repurchase aligns with the Labour government’s Plan for Change, emphasising national security, and complements the prime minister’s Homes for Heroes initiative, exempting veterans from local connection requirements for social housing.
UK Secretary of State for Defence John Healey 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 house building.
“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 substandard homes = issues which have built up over the past decade.”
With the agreement in place, the MoD is gearing up for substantial redevelopment. Plans for 265 new houses and apartments at Royal Air Force Brize Norton will be submitted shortly, with additional proposals for around 300 new houses at Catterick Garrison expected in early 2025.
