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Developments in Military Housing
17 December 2024
Type
Written Ministerial Statement
Department
Ministry of Defence
At a Glance
Issue Summary
The Ministry of Defence (MOD) has reacquired service family estate homes previously sold to Annington Property Ltd in 1996.
Action Requested
The MOD is reversing the privatisation deal, saving £230 million annually and paving the way for a substantial improvement programme. The Government plans to publish a new military housing strategy next year to deliver high-quality homes for Armed Forces families.
Key Facts
- The MOD reacquired 36,000 service family estate homes sold to Annington Property Ltd in 1996.
- The deal cost the taxpayer nearly £8 billion since 1996 and left properties worth billions unused.
- The new agreement saves over £600,000 daily in rental costs for the MOD.
- The estate was bought back by the MOD for £6 billion but valued at £10.1 billion by Annington when not subject to leases.
- Public expenditure impact is confined to £1.7 billion due to eliminating lease liabilities.
- Failing to act would have led to additional costs of £5.9 billion over ten years and the return of properties worth £1.3 billion to a private company.
- The Government will publish a new military housing strategy next year.
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