MOD unveils £9Bn housing overhaul

Homeland November 5, 2025

The Ministry of Defence has launched its most ambitious housing programme in over 50 years, committing £9 billion over the next decade to fix and modernise its family housing estate. The new “Defence Housing Strategy 2025” signals a complete overhaul of the MoD’s approach to accommodation, creating a wave of significant, long-term opportunities for contractors, developers, and the entire defence supply chain.

The strategy, detailed in a comprehensive new report, outlines a “generational renewal” that will see 9 in 10 of the UK’s 50,000 service family homes modernised or upgraded. A key goal is for at least one-third of the entire housing estate to consist of new-build properties by the end of the programme.

This initiative marks a decisive shift away from the previous reactive “fix on fail” maintenance model, which has been blamed for the poor condition of much of the housing stock. Instead, the MoD will implement a professional, planned lifecycle maintenance programme, promising a more stable and predictable pipeline of work for industry partners.

Key Opportunities for Suppliers Include:

Large-Scale Refurbishment: The plan calls for substantial upgrades to approximately 43,000 homes, including the installation of modern kitchens and bathrooms, new windows and doors, boiler replacements, full house rewiring, and extensive roofing works.
Energy Efficiency Retrofit: A major focus is on improving thermal efficiency. All renewed properties must meet a minimum of EPC C rating, with new builds targeting EPC B or higher. This opens the door for specialists in insulation, heat pumps, and other green technologies.
New Build Construction: The strategy commits to a significant expansion of the housing portfolio to meet the needs of a growing Armed Forces. This includes building over 9,000 extra homes and replacing outdated stock, creating prime opportunities for housebuilders.

New Delivery Body to Partner with Industry

Central to the strategy is the creation of a new standalone public body, the Defence Housing Service. This organisation will be established to act as a professional landlord and developer, consolidating the MoD’s fragmented housing functions.

Crucially for industry, the Defence Housing Service will have “appropriate commercial discretion, including the ability to raise private investment and finance, enter into joint ventures and partnerships and secure the right skills and capabilities.” This signals a clear intent to move away from rigid, traditional procurement and embrace more agile, collaborative models with the private sector. The report specifically encourages engagement with “smaller and regional housebuilders and other businesses and technical/professional specialists.”

Unlocking Defence Land for 100,000+ Homes

Perhaps the largest opportunity lies in the plan to “turbocharge the use of surplus Defence land for housebuilding.” The strategy assesses that over 100,000 new homes can be built on MoD land, for both military and civilian use.

A dedicated delivery function, tentatively named ‘Defence Developments’, will be established within the new Housing Service to drive these complex regeneration projects. It will be empowered to work with private sector partners to deliver not just housing, but also supporting infrastructure.

To accelerate this work, the strategy calls for “specific planning powers and flexibilities” to fast-track development on Defence-owned land, potentially through new Development Corporations. This commitment aims to de-risk projects and create a more attractive environment for private investment.

The strategy represents a fundamental reset in the MoD’s relationship with its housing assets and its industry partners. By providing a 10-year, £9bn funding programme and a new commercial framework, the Ministry of Defence is sending a clear signal to the market: it is open for business on a scale not seen in a generation.

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