650 Military homes in Portsmouth will be put back into public ownership after the government struck a landmark deal.
The government has claimed that billions of pounds will be saved over the next ten years after it bought 36,347 homes from property management company Annington, including 650 in Portsmouth.
The move aims to deliver savings while enabling investment into homes for military families, many of whom are living with damp, mould and leaks.
Portsmouth South MP Stephen Morgan said: “It shames our nation that in the lead-up to Christmas, too many military families are living in sub-standard military housing.
“For the families of those who put themselves in harm’s way to keep our country safe, that is unacceptable.
“I have long campaigned for change and now it is coming. This announcement is a major step in ensuring homes fit for our heroes.*
The acquisition reverses a decision made during John Major’s government in 1996, where 57,400 houses used by military service men and women and their families were sold to property management company Annington for £1.7bn.
Since then, the Ministry of Defence has rented back the homes and managed repair and refurbishment costs, amounting to £600,000 per day or nearly £230m per year.
According to a Commons Defence Committee report, two-thirds of family homes under Annington’s portfolio needed “extensive refurbishment or rebuilding” along with one-third of homes rented by individuals.
Annington will hand over their 999-year lease on the homes in return for £5.99bn despite the properties being valued at £8bn last year.
John Healey MP, Secretary of State for Defence said: “This deal shows our government is determined to deliver homes fit for our heroes. These important savings to the defence budget will help fix the deep-set problems we inherited.
“That money could have been spent on making forces’ housing fit for the future. Our Labour government has taken decisive action to reverse that deal, bringing military housing back into public hands and unlocking investment for the future.
“There is still a lot of work to do to deliver the homes our military families deserve, and these problems will not be fixed overnight. But this is a decisive break with the failed approach of the past and a major step forward on that journey.”
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