MoD announces major sell-off
Wed 23rd November 2016, 2:44 pm
The Ministry of Defence (MoD) has announced it will be disposing 91 sites by 2040, saving up to £3 billion in running costs.
The news was welcomed by Sitematch adviser James Leaver, partner at Knight Frank. After reviewing the MoD’s publication, A better defence estate, Leaver told Sitematch: "The document is a good piece of work and it is clear that its authors have challenged the operational needs of the MoD, the required footprint and the cost of running the estate, probably harder than ever before.”
According to the publication, disposing the sites would help deliver 55,000 new homes, a number that Leaver is sceptical about: "The committment to pipeline disposals to help deliver 55,000 houses may prove to be optimistic but it is good to see the MoD has a plan. The release of the 91 sites over the next 24 years will help deliver housing numbers but is also unlikely to flood the market in any location."
The document was published in November 2016, and sets out a number of other proposals to rationalise the defence estate.
The MoD currently owns almost 2% of the UK’s total land mass. According to defence secretary Sir Michael Fallon, the annual cost of maintaining the estate is £2.5 billion. Furthermore, 40% of build assets are more than 50 years old.
Read the full document.