The National Audit Office (NAO) has today published its report into the MOD’s buy-back of 36,000 homes.  

The report confirms that bringing these homes back into public ownership has already stopped what could have been billions of pounds in future losses, while giving the MOD the control it needs to improve housing for families. The homes had originally been sold in 1996 and leased back for many years, at huge cost to taxpayers. Since completing the buy-back in early 2025, the MOD has been able to redirect money previously spent on rent into making homes better.  

We are already making rapid improvements to drive immediate, tangible positive changes for Service families. Over the past year, 1,250 of the worst homes have been upgraded, and a further 2,000 are due to be improved across the UK in the next 12 months. 

Whilst the report states that the deal to repurchase was the lowest cost option and handled effectively, it also highlights some challenges for the MOD and the need to establish the Defence Housing Service with the powers and autonomy it requires to deliver planned reform efficiently. 

The full recommendations made by the NAO to the MOD are : 

• learning from other government organisations about different ways to bring in private funding and private sector expertise, understanding the advantages and risks of each approach.  
• confirming long-term funding plans for the defence housing estate.
• setting up the new Defence Housing Service with the authority it needs to make improvements happen.
• being clear with families about what to expect, by publishing plans and timelines for upgrading and rebuilding homes, as well as for future housing developments.

Natalie Elphicke Ross OBE, Chair of the Defence Housing Service, said:  

“I welcome the NAO’s report, which confirms the decisive action to repurchase military housing put a stop to billions of pounds of further lost value to the taxpayer.” 

“We are already delivering on the historic opportunity unlocked by the deal, upgrading military homes across the UK and making a real difference to the lives of thousands of service families.“

“The new Defence Housing Service will bring the focus and specialist expertise we need to transform military homes, driving forward a decade of renewal and backed by the £9Bn Defence Housing Strategy.”