The Ministry of Defence has confirmed that a full review is now underway to shape the future of military accommodation across the UK, following the Government’s reacquisition of properties from Annington Homes earlier this year.
In response to a written question from James Cartlidge MP, Parliamentary Under-Secretary for Defence and Veterans Al Carns said that details of which sites will be refurbished have not yet been finalised, citing the ongoing Defence Housing Strategy Review.
“We are unable to give details of our future plans for specific sites at this time,” Carns noted, highlighting that the review will determine how reacquired properties will be utilised and upgraded to meet the evolving needs of the Armed Forces and their families.
A new Military Housing Strategy is due to be published in summer 2025, and is expected to outline a long-term roadmap for delivering what officials have described as a “generational renewal of military accommodation.”
The reacquisition of the estate from Annington—originally sold under a controversial private finance initiative in the 1990s—was announced in January 2025 and marked a significant policy shift in how the MOD manages its housing stock.
The upcoming strategy is anticipated to address long-standing concerns about the quality and availability of Service Family Accommodation (SFA), and to reflect broader goals around retention, wellbeing, and estate sustainability.
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We spent £165,075 to buy back each property, those properties were in a crap state (we know as the MOD was somehow on the hook for maintenance but didn’t deliver) and built to older standards, so I’d expect a further £20,000 per house to bring it up to a livable never mind modern standards.
I don’t know the makeup of the portfolio but the average cost to build a new 3 bedroom in the UK is £158,400 – £264,000 (we would be looking at the lower end of that as we aren’t kitting out military housing with marble countertops). A not insignificant part of those costs is administrative, profit margins, land purchase and associated taxes, costs which MOD owned properties can/should be able to avoid. I can’t help feeling new builds should be the order of the day as a first option whenever possible, build from a simple catalog of cost-effective, modern, energy efficient homes to a fixed cost. Use the same catalogue for homes for new “council” stock and make it available to those wanting to get on the ladder. Create Great British Homes and hire to kickstart it all if need be.
There are numerous ways to use housing stock for recruitment, retention and eventual retirement while helping to improve the general housing stock numbers if they choose to use any of them.
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The original sale to Annington Homes was because the MoD no longer considered managing Married Quarters (as they were then called) to be part of its core business, then inexplicably kept maintenance and upgrades (very different things) of someone else’s (ie Annington’s) houses on as a MoD task. It was ideoologically and financially incoherent at the time, and in practice the whole ‘project’ failed because MoD failed to properly maintain and upgrade someone else’s houses.
MoDs 2024/5 solution … you would expect it to be to keep the relationship with Annington but to pour more money into the maint and upgrade task, but instead it has spent billions buying back the properties. Will there be much money left over to spend on the backlog of maint and upgrade work, which was the problem all along? They now have ownership of pads quarters (SFA) back as one of their core tasks. It’s all just too ridiculous.
On a broader issue, will other failed ‘privatisations’ or ‘contractorisations’ be reversed after decades of evidence that they are not working? There was an opportunity to take army recruiting back in-house, but…no…a contract (now for all 3 services) was instead awarded to another private company, unproven in the task of recruiting for military organisations. Serco will lead a consortium of 8 companies, including itself, who all require to make a profit. Contract is for 7 years plus a 3 year optional extension.
Completely batty and counter-productive just as you say Graham. Just like everything else in our dysfunctional state!