NOW take back water, trains and the Royal Mail, campaigners said yesterday as the government reversed the privatisation of military homes.

Defence Secretary John Healey announced that the homes, sold off by the Major government in 1996, would be bought back by the public sector after a series of scandals about their dilapidation and disrepair.

More than 36,000 homes are to be bought back at a cost to the taxpayers of nearly £6 billion, but will save the Ministry of Defence (MoD) £230 million in annual rent. 

The homes have been owned by property firm Annington, which is controlled by billionaire investor Guy Hands.

The move was welcomed by public ownership campaign We Own It director Cat Hobbs.

Ms Hobbs told the Star: “This is absolutely the right move from the Ministry of Defence and excellent news for service users, their families and UK taxpayers.

“What a disaster that these homes were privatised in the first place.

“This is a stark reminder that it’s better value to own than to rent, and so it’s better for the public if we own rather than rent our crucial services and infrastructure.

“Now that the government has recognised the case against privatisation here they must look at other key sectors and assets like water, the NHS, rail rolling stock [trains] and the Royal Mail.”

Mr Healey said the move represented the end of “one of the worst-ever government deals.”

He added that “this is a once in a generation opportunity, not only to fix the dire state of military housing but to help drive forward our economic growth mission, creating jobs and boosting British housebuilding” but warned that problems with the accommodation “will not be fixed overnight.

“It is shameful that in the lead up to Christmas, too many military families will be living with damp, mould and sub-standard homes — issues which have built up over the past decade,” Mr Healey said.

The Tories had in fact initiated reversing the privatisation in a process which had been mired in legal disputes.

The MoD said the previous deal left the taxpayer nearly £8 billion worse off.

Treasury Chief Secretary Darren Jones said that the new deal would “save the taxpayer money immediately,” while also allowing “major development and improvements across the military housing estate,” and delivering to “service personnel the homes they deserve.”