A disgruntled home owner in South Tyneside is seeking a £10,000 pay-out – claiming council chiefs crashed the value of his house by allowing a house of multiple occupation (HMO) next door.

Jimmy King, 61, says £35,000 has been wiped off the estimated selling price of his end-of-terrace property in St Jude’s Terrace, Laygate, South Shields, after South Tyneside Council allowed the neighbouring maisonette to become an HMO in April 2021.

The offshore worker has now started legal proceedings in the small claims court after what he says was an attempt at mediation was rejected by the council.

Mr King insists his health has suffered due to the ongoing dispute and he now suffers with permanent stress symptoms, a condition medically diagnosed.

The devaluation has been confirmed by a local estate agent after a visit in August.

In a letter following its inspection, the company wrote it had ‘regrettably’ learned that the house next door is a registered HMO.

Jimmy King outside his home in St Jude's Terrace, in South Shields. | National World

placeholder image — Jimmy King outside his home in St Jude's Terrace, in South Shields. | National World

It said: “With the benefit of vacant possession, we would have expected the home to have achieved a price around £165,000 to £170,000.

“However, the impact of being next door to an HMO would need to be considered and with this in mind, feel that the value would be diminished.”

It adds: “Experience of other sales where an HMO has been close by leads us to advise that that value would be more in the region of £130,000 to £135,000.”

Mr King insists the council approved the HMO without consulting him or other neighbours and failed to consider the possible impact of its decision.

He said: “I moved into my house in 2007, and it’s been a great home, and the area has always been very nice to live in but that has completely changed since the council allowed this previously vacant property to become an HMO.

“At first the council denied it was an HMO, but I’ve seen the planning consent. The place is noisy, and people are coming at all hours of the day and night.”

He added: “The knock-on effect for me has been huge and damaging. I’ve suffered tremendous stress from my house depreciating by so much.

“If I wanted to sell up I couldn’t – a bank is never going to lend money for a mortgage to someone to buy a property next to an HMO.

Sign up to the Shields Gazette’s free newsletters - delivering news and sport to your inbox throughout the week

“The council is flooding South Tyneside with HMOs.

“I have tried every option to get the council to admit that its actions have caused me emotional and financial damage, but it has ignored me. Legal action is my only option.”

Mr King has documentation to show he used the HM Courts & Tribunals Service’s mediation service in September.

It confirms agreement could not be reached between him and the council and that his claim will proceed to a court hearing, with no date yet set.

A council spokesperson said: “The council has received the claim through the courts and has filed its defence.

“As legal proceedings are ongoing, it is inappropriate to comment further.”