The poor standard of service accomodation has seen a rising number of folks decide to move into private accomodation if they are at all able. This trend is also influenced by the generally widening gulf between what the MoD considers acceptable and the increased expectations of the wider population. However, compare and contrast the increase in rental charges of SFA (above inflation) with the stagnation/reduction in allowances associated with living in private accomodation. For example, Home-to-Duty has been reduced under JPA (18 vice 20 journeys per month), and in no way reflects the deliberate government policy to increase the cost of motoring for "environmental" purposes. I'm sure that pay-per-mile road pricing will make this situation much worse. Furthermore, the refund of legal expenses for private moves has remained capped at the ridiculous figure of £5000 for years and in no way reflects the true cost of moving house, particularly once over the 3% stamp duty threshold - as more and more people are discovering. This allowance doesn't even appear to be linked to RPI, never mind to the massive increases in the cost of housing.
Before anyone says anything so trite and intellectually deficient as "you don't have to live out" - just consider what would happen if everyone who currently lives in private accomodation exercised their right to be provided with SFA/SLA. The accomodation system would collapse under the strain and the cost to the MoD in excess rent payments would be enormous. In fact, everyone who lives "out" is doing the MoD a massive favour. A cynic might suggest that the MoD might actually prefer to let the poor standard of public accomodation continue to drive people into private accomodation as a cost-saving measure.