Commons Sense

House of Commons · Written Ministerial Statement

Defence Estate Update

27 January 2022 · Ministry of Defence

Proposed by Jeremy Quin Con Horsham

Defence

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • Ministry of Defence is reviewing arrangements with Annington Property Ltd to secure better value for money in Service Family Accommodation.
  • MOD has engaged advisers to settle rent reviews and will explore statutory leasehold enfranchisement rights to buy back properties.
  • A test case will be initiated to assess the feasibility and cost-effectiveness of the MOD buying back properties from Annington.

Issue summary

The Ministry of Defence is reviewing its arrangements with Annington Property Ltd to secure better value for money regarding Service Family Accommodation.

Action requested

MOD has engaged advisers to settle rent reviews and will explore statutory leasehold enfranchisement rights to buy back properties from Annington, starting with a single test case. The MOD aims to reduce untenanted property liabilities and gain full ownership of units if it represents good value for money.

Key facts

  • In 1996, the MOD granted Annington Property Ltd a 999-year lease of over 55,000 Service Family Accommodation homes.
  • The National Audit Office concluded taxpayers are between £2.2 billion and £4.2 billion worse off due to these arrangements.
  • MOD achieved a settlement in the site rent review process changing the overall adjustment to open market rents from 58% to 49.6%.
  • MOD plans to explore statutory leasehold enfranchisement rights, with an initial claim for one house and another imminent.
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