Its huge ranging Strategic Defence Overview (SDR) may also see development of a minimum of six new munitions factories.
The lodging money might be spent on pressing repairs, upgrades and new housing improvement on surplus MOD land.
The extra funding means greater than £7bn might be spent throughout this Parliament on service household lodging and new construct single dwelling lodging.
Work might be guided by the forthcoming Defence Housing Technique.
Defence Secretary, John Healey MP mentioned: “For too lengthy, many navy households have lived in sub-standard houses, however this authorities is taking decisive motion to repair the dire state of navy lodging and make sure that our heroes and their family members reside within the houses they deserve.”
Spending plans will see rapid funding in pressing renovation of 1,000 houses in most want of restore.