Military housing will be transformed, ministers vow, as they buy 36k homes sold by John Major’s government
MINISTERS have vowed to transform military housing as they buy back 36,000 homes sold by John Major’s government.
Defence Secretary John Healey, above, called the 1996 sale “one of the worst-ever government deals”.
The 1996 deal saw Defence Secretary Michal Portillo sell 55,000 homes to investment fund Annington for £1.7bn, roughly £27,000 each.
It was said to have left taxpayers £8billion worse off and condemned hero troops to living in damp, rotten homes for decades.
Mr Healey insisted the £6billion buyback was good value for money, would save £600,000 a day in rent and pave the way for a once-in-a- generation opportunity to create Homes Fit For Heroes — in line with The Sun’s campaign.
He said: “Our Armed Forces are carrying out the ultimate public service.
“The very least they have the right to expect is a decent home.
“But for too many military families their experience of military housing is one of persistent problems like damp and mould or repairs that simply never get done.”
The deal means private equity firm Terra Firma, which bought the homes for £3.2billion in 2002, has almost doubled its money.
The company is controlled by financier Guy Hands, best known for the implosion of music group EMI in 2011.