June 26, 2026

DIO Update: Publication of NAO Report on the repurchase of the Defence SFA Estate


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.

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.

For the full set of NAO recommendations and details on the report’s impact, further information is available on Defence Homes

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