The state of military accommodation is "shocking", with two-thirds of service family homes "in such poor condition that they are essentially no longer fit for purpose", a report by MPs has found.
The Defence Committee highlighted persistent issues with damp and mould and urged the Ministry of Defence and the Treasury to commit more funds to improve the entire military estate "before it deteriorates beyond repair".
The MPs warned that more soldiers, sailors and aviators would vote with their feet and quit the armed forces unless long-standing problems with housing are resolved.
Service families' trust in the Defence Infrastructure Organisation (DIO) - the branch of the MoD that oversees military housing - and the contractors that provide maintenance services "has been damaged" and needs to be rebuilt, according to the report published on Wednesday.
Claims by the MoD that the service provided by contractors is recovering "need to be borne out in a demonstrable improvement in the customer experience and markedly increased customer satisfaction", the MPs said.
Tan Dhesi, chair of the Defence Committee, said: "It is simply not acceptable to expect those who fight for their country to live in housing with serious damp and mould - conditions that pose a danger to their and their families' health.
"It is clear that many of these problems cannot be solved without major investment in the Defence estate.
"However difficult public finances might be, the Ministry of Defence and Treasury need to find a way to work together to make sure that all Service housing on offer genuinely meets a decent standard."
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The 55-page report - entitled Service Accommodation - presents evidence heard by a previous iteration of the committee during the last parliament.
Concerns about the state of military housing are not new, following decades of underinvestment and mismanagement of the estate, which comprises nearly 50,000 homes for service families as well as more than 130,000 "bedspaces" for people who are living alone or only require a room.
However, the last government had pledged to make dramatic improvements to accommodation after new cases emerged of horrific damp, rat infestations, mould and heating problems.
Setting out the scale of the challenge, the report said: "A third of Single Living Accommodation and two-thirds of Service Families Accommodation are in such poor condition that they are essentially no longer fit for purpose. It would require billions of pounds of investment to refurbish or rebuild all military housing to meet modern living standards."
The MPs quoted evidence from Michael Green, chief executive at DIO, who described the state of the estate as "shocking".
It was a description the report then echoed when addressing cases of mould.
"It is shocking that, until a policy change in 2022, it was considered acceptable to house families in properties known to have damp and mould. However, issues with damp and mould still exist."
A Ministry of Defence spokesperson said: "This report lays bare the dire state of service accommodation this government inherited and is determined to fix.
"We are delivering our Plan for Change by renewing the nation's contract with those who serve, and we are working hard to improve the quality of housing for our personnel and their families - including developing new standards for service accommodation.
"We are committed to listening to our people and are establishing an Armed Forces Commissioner to act as a strong, independent champion for personnel and their families to improve service life."
(c) Sky News 2024: Damp and mould found in 'shocking' military accommodation, MPs say