Rents charged to many service personnel are set to increase under "major reforms" to accommodation rates aimed at reflecting higher quality homes now available, the Defence Secretary has announced.

Michael Fallon said the current system was out of date meaning many rents had fallen behind the "appropriate rate" for properties which are of a higher standard than in the past.

The Government will introduce a "modern, objective system" following a series of reviews into military accommodation, Mr Fallon said, aimed at making clear how charges are calculated and what personnel receive in return.

The reforms mean soldiers, sailors and airmen currently paying rents at the "lower end" will see charges increase over coming years.

In a written statement to MPs, Mr Fallon said: "This will change charges so that they accurately reflect the quality of the home provided.

"We are not proposing to increase the top charge rate: indeed, far fewer personnel would pay it.

"Many of those currently paying charges at the lower end of the scale, particularly where they live in upgraded, better quality properties, would see charges gradually increase over a number of years but will rise at a set annual rate that is scaled according to rank and property type.

"We expect this to be limited to about £20-30 a month for other ranks."

He added: "The new charging system is simpler, fairer and will help to put our service accommodation on a sound, long-term financial footing that will enable enhanced future investment."

The changes will be implemented via an 18-month survey aimed at providing data on every property to allow the new rent to properly set.

Mr Fallon said all additional rental money would be used to improve military accommodation , including a five-year programme of energy efficiency measures which will cut heating bills.

He said from April 2016, no service family living anywhere in the UK will be allocated a property that does not meet the Department for Community and Local Government's Decent Homes Standard.

The Defence Secretary said the changes had been made following both internal reviews and work by the Armed Forces Pay Review Body.

He said: "The current system for determining accommodation charges is no longer fit for purpose. It uses out-of-date methods that are no longer relevant to modern living.

"It is also so complex and subjective that it is difficult to achieve consistent and regularly updated assessments. As a result, despite the investment in recent years, assessments of a large number of properties have not been updated or graded accurately.

"More than half of our properties are not being charged at the appropriate rate, meaning that rents have fallen significantly behind the rising standards of military accommodation."

Shadow defence secretary Vernon Coaker said: "Under this Government, thousands of soldiers have been made redundant and our servicemen and women have seen their pay and conditions deteriorate. And now the Defence Secretary says that our armed forces and their families should pay higher rent for basic service accommodation.

"This tells you all you need to know about David Cameron - he refuses to countenance providing additional resources to the NHS through a tax on the very highest value properties worth over £2m, he has cut taxes for millionaires but he is prepared to charge our troops more to live with their families while they serve our country.

"It's about time the Defence Secretary stood up for our armed forces and their families, and ensured they are treated with the respect their service deserves."

Catherine Spencer, chief executive of the Army Families Federation (AFF), said: "AFF welcomes the new categories being used to grade housing which will provide a clearer system of charging with less ambiguity.

"It is a step forward to identify the needs of a modern family and reflect this in the charging system, for example access to good quality broadband is more relevant than proximity to a phone box.

"We are pleased that the top level of service family accommodation (SFA) costs will not change and those who will see an increase may be reassured that it will not rise above £30 a month for other ranks.

"As with all new policy, some people will be affected more than others and AFF will work with command to identify and address disadvantage."

Kim Richardson, chair of the Naval Families Federation, said: "The new Combined Accommodation Assessment System (CAAS) will provide much more certainty to Naval Service families.

"They have told us that they found the old system overly complicated, inconsistent, and confusing, with great differences in standards and costs across the country.

"Whilst some charges may increase for certain properties, the independent assessments should reassure our families that the rental charges they pay are fair and any extra money raised as a result of increased charges is to be reinvested in SFA."

Bill Mahon, director of the RAF Families Federation, said: "The quality of SFA has long been a concern for many occupants, especially where the condition of service accommodation has not been of the standard that our families deserve.

"The RAF Families Federation has worked hard to ensure that their concerns have been listened to."

"I am very pleased to see the MoD's commitment to improving the quality of service accommodation, reflected in the CAAS, as this investment will make a real difference to the lives of our personnel and their families."