Gay servicemen and women in the Armed Forces are to be allowed to live in family quarters as long as their relationships is registered under the new Civil Partnership Act, which comes into force later this year..

An MoD spokesman said that the new policy would come into effect for all Army, Royal Navy and RAF staff from the autumn.

"If same-sex couples commit themselves to a registered civil partnership that is founded in statute and provides rights and obligations that are comparable to a marriage, the MoD would expect to afford the same recognition in its own policies towards service personnel,” The telegraph quotes the spokesman as saying.

Anton Hanney, a spokesman for the Navy, said: "We are obliged to give equal treatment to gay and lesbian partnerships under these terms. They already have equal pension rights." However, he stressed that the Navy's no-sex policy would remain on ships, at naval bases and in barracks.

The Civil Partnership Act 2004 was passed by the House of Lords on 18 November 2004, the date on which it also received Royal Assent. It finally gives gay couples the same rights as married heterosexual couples.

Yesterday, the Royal Navy also announced that had decided to actively target the gay market by placing recruitment adverts in gay magazines and by joining Stonewall’s Diversity Champions Programme, which promotes good working conditions for all existing and potential employees and ensures equal treatment for those who are lesbian, gay and bisexual

There are an estimated 2,100 gay service men and women in the Navy and it is hoped the move towards equality will encourage more to "come out".

Stonewall’s Ben Summerskill said, “I think the Navy have been very courageous to engage with this so publicly. We hope that the RAF and the army will be following shortly."

Commander Tim Kingsbury, the Navy's diversity and equality policy officer, said: "Commanding officers have a key role to play in creating a culture in which gay and lesbian personnel feel confident that they work without being harassed or bullied because of their orientation."