County Durham Landlords Reserves Rise To Almost £160m After Reporting Multi-Million Pound Surplus

Believe Housing, with its head offices based at Seaham County Durham

Believe Housing Reports £14.9m Surplus As Turnover Rises To £86.9m...

27th May 2026

A County Durham Housing Provider has recorded a multi-million-pound surplus in its latest financial year, with turnover rising by more than £6.7 million pounds, according to its annual accounts for the year ending 31 March 2025, as tenant rents hit record highs.

Believe Housing ltd, which says it owns and manages around 18,334 homes, reported a group turnover of £86.901 million pounds for 2024/25 financial year, up from £80.178 million the previous year, representing an increase of around £6.7 million pounds, or approximately an 8.4% growth.

The accounts also show that Believe Housing did make a surplus, with its operating surplus increasing to £23.129 million, compared with £16.776 million in the previous year. After interest and finance costs were taken into account, the organisation reported a surplus before taxation of £14.940 million, up from £9.362 million the previous year.

Because Believe Housing is a registered provider of social housing and a charitable co-operative and community benefit society, the figure is described as a surplus rather than a shareholder profit. The accounts state that its activities are focused on the provision of social and affordable housing, with surpluses used to support its wider housing and investment programme.

No Tax Paid Again this Year !

Believe Housing reported a surplus before taxation of £14.940 million, which at the standard UK corporation tax rate of 25% would have produced a notional tax figure of around £3.735 million pounds to the UK Treasury. However, the accounts offset this with a non-taxable expense/adjustment of £3.735 million, leaving a current tax charge of nil, adding to the public perception that companies like Believe Housing are 'Dodging their Tax Laibilities' with calls for the law to change on firms using lucrative tax loopholes growing.

Reserves Increase To Almost £160m

The financial statements also show that Believe Housing’s group reserves increased significantly during the year. The consolidated statement of changes in reserves records that reserves stood at £143.222 million at the start of the year, before rising to £159.654 million by 31 March 2025.

That means Believe Housing’s group reserves increased by £16.432 million during the financial year.

However, reserves should not be confused with cash held in the bank. The accounts separately report a cash position of £6.486 million at 31 March 2025, while outstanding loans totalled an eyewatering £228.750 million.

Rent Rise Helped Drive Income

A hefty 7.7% Rent Increase helped Catapult the Housing Firms Income

The board’s review says the reported surplus was affected by several factors, including a 7.7% rent increase, changes to pension costs, higher pay costs, increased property repair costs, and changes to depreciation charges The accounts also show that the organisation invested heavily during the year, including £25.045 million in building and acquiring new homes and £58.808 million in improving existing homes.

Believe Housing said it delivered 208 new homes during 2024/25, although this was below its target of 250. The accounts say delays linked to onsite delivery and grant funding availability contributed to the shortfall.

Customer Satisfaction Falls Below Target

While the financial figures show a strong surplus and rising reserves, the accounts also reveal that overall customer satisfaction fell below target. Believe Housing had set a target of 82%, but actual satisfaction was recorded at more like 77%, down from 81% the previous year.

Repairs satisfaction, however, improved, with the organisation reporting 90% satisfaction with repairs, above its 87% target.

The accounts therefore show that Believe Housing ended the financial year with a much higher turnover, a larger surplus than the previous year, and increased reserves — although the wider financial picture also includes substantial borrowing, ongoing investment commitments, and rising demand for repairs and housing services, as its tetants continue to shoulder the firms financial burdens through eyewatering rent increases & a 'lackluster' customer services.