Question to the Ministry of Defence:

To ask His Majesty's Government what assessment they have made of the potential benefits of establishing a housing association for defence housing, in particular the ability of housing associations to (1) borrow up to 50 per cent of their assets from the private sector outside of the public sector borrowing requirement, and (2) access Homes England grants for new housing developments.

The Defence Housing Strategy review team assessed a range of organisational and delivery models to identify the approach best able to improve outcomes for Service Personnel and their families, deliver value for money, and support the long-term renewal of the Defence housing estate.

The assessment, which is summarised in the published Defence Housing Strategy, found that transferring Defence housing to a housing association would be most likely to delay improvements, increase costs, reduce operational effectiveness and undermine Crown tenancy arrangements. Additionally, expert financial advice indicated that borrowing through the private sector, outside the public sector borrowing limits, was not a feasible funding route.

The Defence Housing Strategy recommended establishing the Defence Housing Service as a professional, arms-length organisation focused on the specific needs of Service Personnel and their families and that the direct partnership with the military to support this can only be achieved within a public body. The Government supported this recommendation and is progressing legislation to create the Defence Housing Service through the Armed Forces Bill.