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Defence Estate Update
27 January 2022
Type
Written Ministerial Statement
Department
Ministry of Defence
At a Glance
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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