The Committee asked (Q 3003) for an explanation of the MoD stock of empty houses with particular reference to the percentage held vacant in order to run the housing business.

  The number of empty houses held by the MoD varies from month to month, as does the percentage needed to run the business. However, the snapshot picture given below at 30 June 1998 is not untypical.

  There has been a recent increase in the overall number of empty houses held by the MoD (13,554). This is for two reasons. First, a substantial number (3,889) are held pending post-SDR detailed decisions by the Services on personnel deployments. Second, the decline in demand for family quarters by Service families has been running for several years at a level above the historic trends. In the first six months of this calendar year the reduction in the number of families living in family quarters (1,607) is nearly equal to the total reduction for 1997 (1,711).

  Families leave quarters in a random pattern and it takes some considerable time to manage these empty houses into discrete geographic groupings for disposal as required under MoD's agreement with Annington Homes. It inevitably involves seeking to make mid-tour moves, which for Service families are understandably unpopular.

  The total number of voids at 30 June was 13,554. This can be divided into three main groupings. First those already agreed for disposal (2,215) and which are either with the DEO for sale or in the process of transfer to Annington Homes. Second, a group which have been identified by the DHE as having a potential for permanent disposal but have been held pending detailed decisions by the three Services post the SDR announcement (3,889). This list will shortly be staffed to the three services for clarification on whether we can go ahead quickly and dispose or whether we need to hold pending further research on options for future troop deployment. US of S has asked for a full report by the end of September.

  The final group of 7,450 represents the proportion the MoD needs to run its housing business. This is 11.6 per cent of the total MoD stock in England, Scotland and Wales.

  Of these 3,846 were pre-allocated to incoming families or earmarked for incoming units. With some 24,000 families moving annually, some from NI and abroad, this can only be achieved by queuing houses for people in this way.

  A further 1,408 houses were held vacant prior to and during major refurbishment works. As around half the extra stock of houses requires upgrade work involving disconnection of utilities, etc., it is not reasonable or practical to leave families in situ in these circumstances.

  The balance of 3,143 houses making up the management margin comprises houses which are currently vacant but which are likely to be needed in the future for Service families. This includes houses "behind the wire" on bases where options for permanent disposal are very limited and to which we seek to allocate families in preference to estates more easily disposed of. Where possible these houses are offered to Housing Associations for temporary letting. Currently we have 745 houses leased to Housing Associations. However, as a recent exercise has shown when we offered 350 houses with little success, these vacancies tend to be in isolated locations or on letting periods too short to interest the social housing sector.