Council acts to stop uncontrolled spread of shared housing

Under the plans, landlords wanting to turn a home into a House in Multiple Occupation (HMO) for up to six people would need planning permission first.

The move is designed to give the Council and local residents more control where concentrations of shared housing are putting pressure on parking, waste, neighbourhood amenity and the character of residential streets.

Councillors will be asked to back the new controls at Full Council on Wednesday, 25 November 2026.

HMOs provide an important source of accommodation, including for students and people working locally. But evidence considered by the Council has highlighted concerns about concentrations of shared housing and the knock-on impact this can have on residential neighbourhoods, including parking pressures, extra bins and waste, noise, anti-social behaviour and the loss of family homes.

Under the proposed changes, anyone wanting to convert a normal residential property into an HMO for up to six people in the areas covered would have to submit a planning application.

That would give the Council the opportunity to consider the impact on the street and surrounding neighbourhood before a conversion takes place, and give local residents the opportunity to have their say.

Councillor Vanessa Renshaw, Cabinet Member for Housing and Public Protection, said:

Residents should have a say when significant numbers of family homes in their neighbourhood are being turned into shared accommodation.
 

At the moment, a property can become an HMO for up to six people without needing planning permission. One conversion might not cause a problem, but when several become concentrated in the same streets the impact can quickly add up.
 

That can mean more cars competing for limited parking, more bins and waste, additional noise and pressure on neighbours.
 

We want to put residents back in the driving seat. These proposals would allow us to look properly at every new conversion and decide whether it is right for that particular street and community.”

The legal mechanism for doing this is known as an Article 4 Direction, but the principle is straightforward: turning a family home into a shared house would require permission from the Council first.

Jonathan Gullis, Leader of Newcastle-under-Lyme Borough Council and Cabinet member for Planning and Town Centres, said:

When we took control of the Council, we promised residents that we would act on the uncontrolled spread of HMOs and give local communities a greater say over what happens in their streets.
 

People buy or rent a home because they want to be part of a neighbourhood. They deserve to know that major changes to the character of their street cannot simply happen around them without anyone having a say.
 

We absolutely recognise the need for different types of housing. We have Keele University, the hospital and major employers on our doorstep, but there has to be a balance.
 

This is a promise made and a promise being delivered: residents first, sensible development and local control over our communities.”

If approved by Full Council, the new controls would take effect immediately for future conversions in the designated area.

They would not apply retrospectively to properties already lawfully operating as HMOs.

A six-week public consultation would then take place, allowing residents, landlords and other interested parties to comment before councillors are asked to confirm the measures within six months.