The Ministry of Defence is accused of selling these houses short

Sale of Defence Homes 'Cost Millions'

The criticism is made in a report published by the National Audit Office.

Some 57,000 properties were sold last year to the Annington Group, led by Japanese bank Nomura. At the time it provoked huge controversy.

It raised over £1.6bn. But the Audit Office, which acts as the Government's financial watchdog, says that reckoned over 30 years, that was £139m less than the value of the estate if it had been kept.

However, the report says the actual sale was competitive and well-managed, and provided safeguards for service families.

The Chairman of the cross-party Commons Defence Select Committee, the Labour MP Bruce George, condemned the sale as a short-sighted money-raising exercise in the run-up to the election.

Michael Portillo: no longer accountable

"I find it difficult to express coherently my continuing anger at the sale, which was deeply insulting to servicemen and women," he said.

"It was insensitive, stupid, and financially and politically motivated to gain resources for the general election."

Menzies Campbell, the Liberal Democrat's Chief Defence Spokesman, also condemned the sell-off.

"This sale was driven by dogma and is a poor memorial to Michael Portillo's stewardship of the Ministry of Defence, for which he can no longer be held to account," he said.

Michael Portillo was Defence Secretary at the time of the sale, but lost his seat in the Commons at the General Election.

Former ministers told the auditors that the private sector would manage the estate better, and the sale had released urgently needed money to upgrade married quarters.

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National Audit Office
Ministry of Defence
Commons Defence Committee