Key decision on ‘co-living’ flats plan at Annie McCarthy’s pub site in South Shields
Plans to convert a town centre pub into a “co-living” residential flats development have been given the green light by council development chiefs.
South Tyneside Council’s planning department has approved an application for the Annie McCarthy’s pub site at Albemarle Street in South Shields, near the South Shields Interchange.
A HMO is a property type which typically involves multiple households living together in one building in individual bedrooms and sharing communal facilities.
A design and access statement submitted to council officials described the proposed Albemarle Street development as “co-living accommodation” aimed at “young professionals” and said it would be “one of the first of its kind in the area”.
A total of 17 bedrooms were proposed across three floors, each with an ensuite and ‘snack station’, along with a ‘café style’ communal kitchen and communal lounge and another communal kitchen in the building.
Other proposed communal features included a cinema / games room, a laundry room, secure bin storage and secure bike storage and a large rooftop terrace, as well as one bedroom benefiting from a “private balcony”.
External alterations were also proposed in association with the change of use which council planning documents described as "cladding to elevations, new/altered window and door openings, creation of a balcony area to one of the ground floor rooms, a glass balustrade to the roof terrace and bin storage enclosures."
Those behind the scheme said the building is “no longer a financially viable public house” and that the proposed co-living development will bring several benefits, such as future tenants “contributing to the local economy by spending money on goods and services” and the development “enhancing the local environment”.
It was also argued that the plan would “re-balance the local housing market in terms of maintaining and increasing longer term residential population” and would provide “much needed high-quality local accommodation for young professionals”.
Although the proposal does not include dedicated car parking spaces, developers said it benefits from its location which “offers excellent access to public transport, services, and amenities within walking distance."
Council planning documents added that the final scheme included cycle storage within the existing garage for 22 bikes.
During a council consultation exercise, Northumbria Police said they had "concerns with regard to the proposed development" over a number of issues, including parking.
It was noted that "the large scale of the development with 17 bedrooms has the potential to cause a number of issues with regard to demand as it has no parking at the site and there is no free car parking nearby with the potential to have up to 34 vehicles".
Police argued this was "likely to cause conflict in the area as parking is already sparse and may result in illegal parking in the area and cause unnecessary obstructions".
Other police concerns included the "vulnerable" location which has "very little natural surveillance" and the number of reported crime incidents in the town centre area, including antisocial behaviour.
An objection was also received from the Sunderland and South Tyneside branch of the Campaign for Real Ale (CAMRA) raising concerns about the loss of the public house and the lack of a "justification" from developers for its loss.
After considering the planning application and assessing it against planning policies, South Tyneside Council's planning department approved it on October 9, 2025.
Council planners, in a decision report, noted the pub is "currently trading" but referenced application documents from developers which said "the pub is no longer viable as a business".
While it was noted that the development would "result in the loss of a public house within the town centre", council planners said "there are a number of other public houses available for members of the public to visit and so it is not considered that this change of use would result in the loss of vitality to the town centre in this regard".
On residential amenity issues, council planners said the development would include a "scheme of ventilation and glazing in order to mitigate against any noise impacts coming from the surrounding town centre area and in particular the [South Shields] Interchange".
It was noted that "the proposed bedrooms would afford an acceptable level of natural light and would each have an acceptable amount of space, in addition to the communal amenity space provided both indoors and outdoors".
Council planners said that as a public house, the existing building would "generate significant disturbance such as increased comings and goings in the evening with associated noise, and customers congregating outside to smoke / chat etc" and that the proposed residential use would represent a "positive impact upon the residential amenity of surrounding properties [...] due to a decrease in noise and disturbance".
The design of the scheme was also said to be "sympathetic to the local character given the eclectic street scene" and on highway safety issues, it was noted that there were parking restrictions in the wider area.
Although it was acknowledged the development would not include any "in-curtilage parking spaces", council planners said there were a number of car parks in the area and a number of public transport links within walking distance of the property, including bus and Metro services at South Shields Interchange.
On the matter of police concerns, the council's planning department said "it is considered that the location of the development would be acceptable and that the surrounding occupied buildings, many of which open later into the night, surrounding CCTV cameras, and presence of members of the public at the nearby interchange which has views towards the site giving natural surveillance, would result in sufficient surveillance of the site to deter crime".
It was also noted that "any issues regarding illegal parking are police matters outwith the planning system" and that "given that the proposed use would be residential in nature it is considered that in itself it would not give rise to an undue level of crime or antisocial behaviour in the area".
The council decision report added: " In conclusion, it is considered that the principle of the development is acceptable.
"It is considered that the proposed use would be compatible with the surrounding area which is mixed-use in character.
"Furthermore, the proposed use would not result in any significant harm to residential amenity, visual amenity, highways safety or biodiversity.
"There is no evidence that existing crime in the area is related to HMOs nor that the proposed development would give rise to unacceptable levels of crime or antisocial behaviour either in and of itself or cumulatively together with other nearby HMOs.
"Having regard to this, the application is recommended for approval."
A management plan submitted with the application earlier this year confirmed a local letting agency would manage the flats development to “ensure 24/7 management” and that there would be regular maintenance and health and safety inspections.
The management plan adds: “All tenants will undergo full referencing, requiring employment reference, previous landlord reference and credit reference.
“Any antisocial behaviour will not be tolerated and dealt with immediately.”
Under planning conditions, the development must be brought forward within three years.
For more information on the plan and council decision, visit South Tyneside Council's planning portal website and search application reference number: 250008