Source · National Audit Office

The repurchase of the service family accommodation estate

The sale and leaseback of military housing by MoD cost billions, but a new agreement should help to reduce losses in the long term

Published: 26 Jun 2026 Recommendations: 6 Type: Value for Money Department: Ministry of Defence
Dept: Ministry of Defence Topics: Defence and national securityPeople and operationsProperty and estates nao.org.uk →

Recommendations

6 items
No response position recorded.

The indexed recommendations do not yet have a recorded response position. This is separate from evidence of implementation. This report was published 26 June 2026.

Recommendation 1

Addressee: Ministry of Defence · Source location: Page 11, 19a

It is vital that the MoD build quickly on the opportunity created by the
repurchase to improve the quality of SFA and realise the savings it has anticipated
as a direct result of the repurchase, and its wider benefits. Over the next year
it should: seek to learn from others in government about the different models for
bringing in the private finance and private sector expertise required to
deliver its plans, and the benefits and risks of the different approaches;

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 2

Addressee: Ministry of Defence · Source location: Page 11, 19b

finalise its long-term funding plans for the defence housing estate;

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 3

Addressee: Ministry of Defence · Source location: Page 11, 19c

establish the Defence Housing Service with the powers, autonomy and
governance arrangements it requires to deliver the planned reform
efficiently;

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 4

Addressee: Ministry of Defence · Source location: Page 11, 19d

prepare, and publish, a summary of its plans and timeline for the refurbishment
and rebuilding of the housing estate and release of land for housebuilding.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 5

Addressee: Ministry of Defence · Source location: Page 11, 20e

The MoD should reflect on the lessons learned from the original Annington
sale and leaseback arrangements, and the repurchase, and share these across
government. This should include consideration of the importance of: fully understanding the risk and responsibility that the government will
continue to bear when selling an asset and factoring this into its calculations
and long-term planning;

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 6

Addressee: Ministry of Defence · Source location: Page 11, 20f

building and utilising commercial capability within government

Response position: No response position recorded

Delivery: No implementation status recorded