Major update on South Tyneside Council's plan to launch 'immediate' crackdown on sprawling HMO shared homes
Senior councillors in South Tyneside have backed a major policy which aims to manage the growth of small houses in multiple occupation (HMOs).
South Tyneside Council’s Labour cabinet, at a meeting this week, approved the introduction of a borough-wide “Article 4 Direction”, meaning that all new HMOs, regardless of size, will need planning approval.
Property owners could previously convert homes, or family ‘dwelling houses’, into small HMOs with three to six occupants without planning permission under national “permitted development” rules, and only larger developments required planning approval from the council.
The Lawe Top area in South Shields is already subject to an Article 4 Direction, which has been in place for around 10 years and has been “effective in limiting further new HMOs”, council officers have said.
A report discussed by the council’s cabinet of senior councillors this week proposed expanding the Article 4 Direction to the whole of South Tyneside, covering all properties across the borough’s towns and villages.
A report to cabinet asked cabinet to decide whether the proposed Article 4 Direction should be “immediate” or “non-immediate.”
With an immediate direction, permitted development rights for small HMOs would immediately be withdrawn and the direction would expire after six months, unless confirmed by the council within that period.
It has previously been discussed by councillors at various meetings that a decision to bring the direction in immediately could have financial implications for the council in terms of requests for compensation.
Elsewhere, the option of a non-immediate direction would give a 12-month notice period before coming into effect and would require a 21-day consultation period, however, there were public concerns this option would lead to a surge in HMO applications before the new planning controls come into force.
South Tyneside Council’s Labour cabinet, in a meeting at South Shields Town Hall on Wednesday (November 5, 2025) agreed to the immediate option, which means the planning controls are now in place.
A report to cabinet said the direction “cannot apply retrospectively” and “would have no effect on any existing HMOs and would not require landlords of existing HMOs to do anything, nor can it apply to any development that has been commenced at the time that a direction comes into force.”
While acknowledging the role of HMOs within the borough’s housing mix, senior councillors noted the “significant rise in HMO conversions” in recent years, many of which have occurred without the council’s knowledge due to current national rules, according to the local authority.
The council previously said that between January, 2024 and September, 2025, at least 30 such cases were identified, alongside 22 new HMO licences issued for larger properties.
In a statement, the council also noted that concerns have also been raised by residents and South Tyneside councillors about the impact of HMO developments on parking, noise, waste management and the character of local neighbourhoods.
Several Labour cabinet members outlined their reasons for supporting an immediate Article 4 Direction at Wednesday’s decision-making cabinet meeting.
Councillor Margaret Meling, cabinet member for economic growth and transport, who introduced the report on the matter, said there were “pros and cons to each option”.
However, the senior councillor said that “given the adverse impact of HMO conversions” it was “imperative that we take action quickly”.
“It’s important to say that HMOs can provide an affordable form of accommodation for a wide range of groups including professionals, students and people on low incomes and are an important part of the property function in housing,” Cllr Meling added.
“However, cases involving the use of these permitted development rights have risen significantly in the last couple of years leading to concerns from residents, as well as elected members on behalf of residents, on a borough-wide basis.
“The absence of planning control in these situations is a significant cause of frustration for residents, where we think there’s a need to control the spread of HMOs, we can use Article 4 Directions to remove permitted development rights, the Secretary of State must be notified and has the power to amend or remove a direction.”
Cllr Meling said the immediate Article 4 Direction aligned with the council’s housing strategy by “using local planning control to ensure that both current and future residents of the borough are in appropriate housing”.
It was also noted that an immediate direction was necessary to “prevent a surge in applications during a 12-month notice period, which could undermine the policy’s intent”.
While Cllr Meling said there was a “risk of compensation claims”, she added that “the cost of inaction on our residents and communities is greater.”
Councillor Judith Taylor, cabinet member for culture, leisure and the visitor economy, said she recognised HMOs can provide “essential housing for vulnerable groups including care leavers, veterans and those at risk of homelessness” but added the council “must balance this with the need for safe, well-managed and appropriately located accommodation”.
The senior councillor said the Article 4 Direction also supports the borough’s Homelessness and Rough Sleeping Strategy 2025-2030 by enabling the council to plan housing provision strategy.
“It’s important to make the point that this isn’t about not welcoming particular people into our community,” Cllr Taylor added.
“However, it’s noted in the report that a more transient population can lead to less community cohesion as people moving in and out of neighbourhoods frequently means there’s less capacity for those crucial community bonds to form.
“It’s therefore important to think about […] how potential high turnover of residents might impact local services, we’re not closing the door on HMOs and they’re an important part of the housing sector in many cases and are absolutely appropriate for a variety of housing needs.
“Rather we are taking a decision and action for better regulation, better outcomes and stronger communities.”
Councillor Ernest Gibson, cabinet member for neighbourhoods and climate change, said he had heard directly from borough residents about the “disruption caused by unchecked HMOs and the growth of them”.
The cabinet member noted concerns around noise, waste, antisocial behaviour and “overcrowding” and singled out issues in the Beach Road area of South Shields where residents report issues linked to HMOs.
“The unchecked growth of HMOs serves no one, except for the landlords and for profit and from the lack of regulation,” Cllr Gibson added.
“Neither residents or neighbourhoods, new and appropriately placed HMOs, nor the residents of HMOs themselves, benefit from this situation.
“The direction will allow us to manage the growth responsibly and ensure that HMOs are located in proper locations and meet community standards, as well as supporting our climate change goal by reducing pressures on infrastructure and promoting sustainability in development, which we can only achieve by appropriate regulation.
“We must also consider the public trust in our planning system, residents expect us to act when their neighbourhoods are at risk.
“Delaying implementation [of the Article 4 Direction] would send the wrong message and could lead to a spike in [HMO] conversions before taking control.”
A meeting of the council’s Riverside Community Area Forum (CAF) on October 28, 2025, also included an agenda item on HMOs where concerned members of the public quizzed senior licensing and planning officers.
Following requests from several residents and councillors in attendance at the Riverside CAF, it was agreed that the committee would ask cabinet to consider “immediate” localised Article 4 Directions in certain areas of South Tyneside, similar to the Lawe Top.
This included directions covering the Westoe Road area, Dean Road, Chichester Road and Imeary Street, however, the recent cabinet decision for a borough-wide Article 4 Direction means planning controls will cover these specific areas, along with the rest of South Tyneside.
The petition around the “regulation of houses in multiple occupation” has now been presented by the MP who said, in a social media post this week, that the Government will “respond in due course, but the campaign will continue.”