Illegal multiple-occupancy landlord may face council prosecution
Written by Jonny Thompson on 14th October 2026
Property on Whitley Bay that has been operating illegally as an HMO.
Council officials are investigating a former guest house in Whitley Bay which has been operating illegally as a house of multiple occupancy (HMO) for more than two years.
The eight-bedroom property in South Parade, Whitley Bay, was converted from guest house to HMO at the start of 2024, but the owners didn’t apply for planning permission or a licence until earlier this week.
Their application paperwork, on the council website (see below), shows this, stating that the switch to a HMO came on January 15, 2024.
Running an unregistered, unapproved HMO could see the owners facing prosecution or being banned from continuing as a landlord.
A North Tyneside Council spokesperson said: “The council will investigate and consider the most appropriate enforcement action.
“This may include requiring the owner or person managing the property to apply for a licence, and consideration to issuing financial penalties, or prosecution where appropriate.”
Tenants who have lived in an unlicensed HMO can also apply for up to two years’ rent back, through a rent repayment order.
Neighbour Rebecca Binns questioned why the council hadn’t identified the property sooner, saying: “I live opposite this ‘guest house’; the same cars are always outside and have been for months.
“It’s been really obvious that this is already operating as an HMO, rather than a guest house, for ages.”
The council spokesperson said the authority has a robust process for spotting unlicensed HMOs.
“We undertake a range of activities to identify properties that may require a licence but are operating without one,” they said.
“This includes reviewing complaints and service requests, analysing council tax and other internal data, and carrying out targeted investigations where intelligence suggests a property may be operating as an unlicensed HMO.”
The council is consulting residents on proposals to widen licensing requirements for HMOs in Whitley Bay, from properties with five or more bedrooms and shared facilities to all HMOs.
The registered owners of the property in South Parade have been asked for comment, but have so far not responded.
