Recommendation 30

HM Government Accepted

. The men and women of our Armed Forces perform the ultimate public service. They make considerable sacrifices, supported by their families, to keep the rest of us safe and secure. Service Family Accommodation The MOD recognise that too many military families are living in sub- standard military housing, often with persistent problems like damp and mould, when the very least they deserve is a good home. We are working hard to address these issues and deliver homes fit for heroes. On 17 December 2024, the MOD announced we had entered into a landmark deal with Annington Homes Limited to buy back Armed Forces housing This deal enables the first steps to be taken to fix the long-term decline in forces’ housing, boost housebuilding and kickstart economic growth. The original deal in 1996 for £1.7 billion, did not strike an appropriate balance of risk and reward has left the British taxpayer nearly £8 billion worse off since – with the combination of rent payments and market value of the homes given away. Money which should have been better spent on maintaining and improving our service family homes. This reacquisition of 36,347 homes from Annington Homes Limited – taking back control of the military housing estate – will save the taxpayer £230 million a year in rent. These important savings to the defence budget will help fix the deep-set problems with the ageing SFA estate. Alongside this deal, the DIO is working on a new military housing strategy, which it will publish this year. The first step will be an action plan to deliver on the opportunities unlocked by this deal, developed with forces families, independent experts and cross-government backing. Key principles of the strategy will include: a generational renewal of Armed Forces accommodation; new opportunities for forces homeownership; and better use of MOD land to support the delivery of affordable homes for families across Britain. Following the deal, we can start work on substantive redevelopment and improvements. The agreement frees up the ability to build on the SFA estate, with a more modern estate helping reduce maintenance costs and, as part of work facilitated by the deal, programmes to build new houses are being accelerated. The MOD cannot confirm the exact amount that will be re-invested in accommodation however, it can state that these important savings pave the way for a substantial improvement and construction programme to provide high quality homes for Armed Forces families, the scale of which will be identified through the Defence Housing Review and the Spending Review later this year. The Defence Housing Review is currently being established, with an external challenge board already engaged. While the MOD cannot provide exact timelines at this early stage, a Spending Review submission will be made by the end of February, the outcomes of which will be published this Summer to provide the future military housing strategy. The DIO has identified some locations where new accommodation for Service Personnel and their families simply cannot wait. Planning applications have been submitted for new houses and apartments at RAF Brize Norton, and further plans will be submitted in Spring 2025 for new houses at Catterick Garrison. SFA is being provided outside of the 1996 deal. At Imjin Barracks in Gloucestershire, 176 modern homes are being built which include low- carbon heating systems and solar panels, reducing energy costs for military families and improving sustainability. This work is a fundamental part of the drive to renew the nation’s contract with those who serve, improving morale and boosting recruitment and retention within the Armed Forces. It is a once-in-a-generation opportunity to fix the long-term decline in military housing and deliver homes fit for heroes. Single Living Accommodation accommodation. With the range of delivery mechanisms at varying levels of maturity, we accept the recommendation and following the release of the Strategic Defence Review will provide an update on funding and completion status of SLA.