SFA – Void Reduction Plan
In November 2018 there were approximately 11,000 empty Service Family Accommodation (SFA) properties across the Defence Estate. This resulted in high rent and maintenance across to the Department. To address this Defence Infrastructure Organisation (DIO) Chief Executive, Graham Dalton, committed to an accelerated reduction in the number of empty properties to c5,000 by Autumn 2021. This number (10% of the overall SFA portfolio in the UK) is required to manage the annual churn of between 15,000 – 18,000 Service house moves. Unlike social housing providers, the MOD does not have ‘waiting lists’ for SFA, we need to provide the certainty of an address ahead of Service personnel and their family moving to a new assignment location.
Air Commodore Wendy Rothery, Head of Regional Delivery Accommodation said: “Actively reducing the SFA void levels to an appropriate management margin of 10%, enables the MOD to invest limited funds on improving the standard and condition of homes for Service personnel and their families, rather than maintaining properties for which there is no long-term requirement”.
The number of empty properties has been allowed to increase over recent years due to a number of reasons:
- DIO have held onto properties in anticipation of returning Service personnel and their families from Germany
- There is some uncertainty over housing requirements arising from wider Defence programmes, such as Defence Estates Optimisation Programme (DEOP)
- DIO knew of proposed changes to accommodation policy which would increase eligibility to SFA
- DIO chose to prioritise limited funding on improving the condition and quality of homes, rather than paying dilapidation and disposals costs for those properties with no long-term requirement.
To reduce the number of empty properties in a coherent and phased way, while saving the Department money, DIO have implemented the Void Reduction Plan. Its key components are:
- Continuing the short-term sub-letting of empty properties to the general public. 1,400 properties have already been sub-let across 50 sites generating £15M in rental income. The programme helps the short-term alleviation of the UK’s housing shortage, while allowing the Department to bring properties back should the need arise
- Handing back an average of 500 properties per year for 7 years to Annington Homes (we lease 38,000 SFA from them in England and Wales)
- Demolishing 400 properties in Northern Ireland as part of the Good Friday Agreement. These properties are unable to be used by other institutions
- Housing c750 Services families who returned from Germany last summer
- Meeting the new eligibility demand from cohabitating couples with more than 250 applicants already housed since April 2109 and a further 100 waiting to move-in.
With these steps, and assuming current demand levels are maintained, the number of empty properties will reduce to around 8,500 by March 2020 and 6,000 by March 2021.