County Durham Housing Associations £86.9m Income, £14.9m Surplus… and Not a Single Penny in Corporation Tax Paid..

Believe Housing's £86.9m Turnover, £14.9m Surplus — But No Corporation Tax Paid

County Durham Housing Firm 'Raking it in', as it dodges yet another years worth of Corporation Tax, as calls for the loophole to be closed grow.

5th March 2026

One of the North East’s largest housing associations has reported rising income and a multi-million pound surplus — while again paying no corporation tax due to its alleged 'charitable status' according to financial reports seen this week by the Teesside & Durham Post..

The newly published accounts show Believe Housing Ltd, which manages more than 18,000 homes across County Durham, increased its turnover to £86.9 million in the year to 31 March 2025, up from £80.2 million the previous year. The organisation also recorded a surplus before tax of £14.94 million, a significant increase from £9.36 million the year before.

Despite the growing revenues and surplus generated by the County Durham Housing Firm, its claimed Believe Housing once again paid no corporation tax whatsoever, because it allegedly operates as a charitable Co-operative and Community Benefit Society — a structure used by many housing firms which allows surpluses to be supposedly reinvested back into the business rather than taxed.

Despite its tax dodging abilities, accounts show Believe Housing now owns and manages 18,334 homes, representing around 40% of all the social housing stock in County Durham, with a property asset base said to be worth more than £413 million pounds. The organisation’s financial position strengthened further during the year, with net assets rising to £159.6 million, up from £143.2 million in 2024.

Rent increases and rising income

The improved financial performance comes during a year when its claimed rents for Believes tenants rose by 7.7%, according to the accounts, contributing to the increase in overall income. Believe Housing said the surplus was also influenced by accounting adjustments relating to pensions and depreciation, along with rising demand for housing services and increased operating income. At the same time, the association claimed it faced increasing costs linked to repairs and maintenance work across its housing stock.

Borrowing climbs above £228 million

The accounts also show the organisation’s borrowing continued to grow as it invests in housing developments and upgrades to existing homes. Total loans stood at £228.75 million, up from £201 million the previous year. During the year the association completed 208 new homes, although this fell short of its target of 250 due to delays linked to grant funding availability..

Growing Debate over the housing associations alleged tax status

Housing associations across the UK are exempt from corporation tax on most of their so called 'social housing activities' because they front themselves as a not-for-profit organisation.. Supporters argue the arrangement allows honest housing providers to reinvest money into new homes, repairs and community projects.

But critics say the growing scale of some housing associations — many generating tens or even hundreds of millions in annual revenue — has led to increasing calls for the tax arrangements to be reviewed & removed from those with multi billion pound revenues & turnovers bringing them into line with what many claim is the 'real world of business'...

With Believe Housing reporting another year of rising income and a growing surplus, the debate over whether large housing associations should continue to avoid corporation tax is likely to intensify especially as its claimed many of its top officers have received inflation busting pay increases on the backs of its most poorest tenants.