UK ministers have published the Defence Housing Strategy 2025, confirming a ten‑year programme backed by £9 billion to modernise, rebuild or refurbish Service Family Accommodation. The policy paper was released on 3 November 2025; a Wales update notes 801 homes in scope and rapid works at 107 properties in mid and west Wales.
Governance will move to a standalone Defence Housing Service, keeping the estate in public hands and operating with a ‘Forces First’ ethos. The Ministry of Defence says the new body will oversee standards, tenancy support and a strengthened Consumer Charter, with a simplified two‑stage complaints process live from 1 October 2025.
Scope of works is significant: nine in ten Defence homes-over 40,000 properties-will be upgraded or modernised, with around 14,000 substantially refurbished or rebuilt. The Strategy ends “fix on fail” maintenance, sets new property standards comparable to high‑quality civilian landlords, and schedules upgrades for the 1,000 lowest‑quality homes by December 2025.
Transactions underpinning delivery include the reacquisition of 36,347 former Service Family Accommodation units from Annington. Contracts were exchanged in December 2024 and completion followed on 9 January 2025, ending an estimated £600,000 a day in rent and enabling comprehensive redevelopment across the estate; media reports place the consideration at about £5.99 billion.
In‑year funding complements the programme. The Government announced a further £1.5 billion for accommodation in May 2025 to address urgent repairs and deliver new homes within this Parliament.
The Strategy also looks beyond Defence needs. Ministers identify potential for more than 100,000 homes on surplus Defence land and propose a Defence Development Fund to recycle land receipts into future projects, alongside targeted planning flexibilities to speed delivery where appropriate.
Eligibility rules will widen to reflect modern family life, including for couples in long‑term relationships and non‑resident parents. During the build‑out period, a rental support scheme will help personnel rent privately where service housing is not yet available. A ‘Forces First’ approach will prioritise access to buy a proportion of homes on selected Defence sites.
In Wales, the Government cites £1.1 billion in Defence spending in the last year supporting around 3,900 jobs-about £340 per person. The renewal programme is presented as supporting construction activity locally as refurbishment and replacement proceed over the next decade.
For families, near‑term changes include named housing officers, clearer service standards through the Consumer Charter, and the two‑stage complaints process overseen by the independent Armed Forces Commissioner. Works on the worst‑condition homes are timetabled through to year‑end 2025.
Further oversight and delivery milestones include a rapid follow‑on review of Single Living Accommodation due by Summer 2026 and annual reporting against housing commitments and decent homes standards set out in the Strategy.
On mixed‑use sites brought forward for housebuilding, the share reserved for ‘Forces First’ homeownership will be agreed between the Ministry of Defence, the relevant local authority and the developer, subject to demand and site viability.