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Newcastle: Percy House development

Newcastle city centre eyesore - regeneration and new footpath to St James' Park set for approval

Daniel Holland by Daniel Holland
11-02-2026 07:00
in Business, Sport
Reading Time: 4 mins read
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Plans for a redevelopment of Percy House in Newcastle City Centre. Photo: Hanro Group

Plans for a redevelopment of Percy House in Newcastle City Centre. Photo: Hanro Group

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The redevelopment of a Newcastle city centre eyesore could be signed off this week.

Plans for a major overhaul of the Percy House building, on the corner of Percy Street and Gallowgate, and the city’s former Labour Club will be put before councillors this week.

A student housing complex is planned for the prominent site, while the regeneration vision also includes the creation of a new public walkway connecting Percy Street to St James’ Park.

Proposals from the Hanro Group are recommended for approval, ahead of a meeting of Newcastle City Council’s planning committee this Friday.

Building plan

If approved, the plan would see both the vacant Labour Club in Leazes Park Road and the tallest section of Percy House demolished.

Percy House is currently made up of two parts – a five-storey block facing onto Percy Street and a 10-storey section behind it.

The remaining, smaller section of Percy House would be refurbished and extended to take it to seven storeys in height, while a new 13-storey block would be built next to it.

Combined, the development would provide bed spaces for up to 432 students. 

A pedestrian and cycling route is planned to connect Percy Street through to Strawberry Lane and onto St James Park, described as a “significant public benefit” that would provide Newcastle United a more direct path to the football stadium on matchdays.

City planners say that the scheme would help meet growing demand for purpose-built student accommodation, with none having been built in the city between 2019/20 and 2024/25 and there being a reported 2.4 students for every available bed space in the city.

An estimated 15,500 of the city’s 60,000-strong student population currently live in HMOs and the council wants to reduce that in order to free up more family homes.

Argument against the redevelopment

The council believes that the Percy House redevelopment would have a “significant detrimental impact” on neighbouring 6-10 Leazes Park Road, which currently has permission for student accommodation but is currently vacant, due to a loss of light.

However, local authority officers say that the benefits of the project outweigh the harm caused.

Recommending that councillors give their approval to the plans, they said: “The current buildings occupying the site are of a poor quality design and have a detrimental impact on the appearance of the area. The proposed layout would reinstate the historic layout of the area and although there would be harm it is considered that it would be to the lower end of less than substantial. 

“As detailed above the proposed development would introduce a new level access route for pedestrians and cyclists from Percy Street to Strawberry Lane which is considered to be a significant public benefit. The route has been an aspiration of the council for a number of years and completes the route already provided by One Strawberry Lane and the Vita Student developments. It has always been difficult to implement this final piece of the route as the site is privately owned and the council has no influence over the redevelopment of the site other than determining this planning application.”

The report adds: “Weighting in favour of the application is the provision of an additional 432 student bedspaces in the city centre on a brownfield site.  It is acknowledged that the proposed development will have a detrimental impact on  6-10 Leazes Park Road with regards to daylight/sunlight and some concerns have been raised regarding the detailed design treatment of the upper floors.

“However overall it is concluded that taking into account the tilted balance, the benefits of the development clearly outweigh any harm arising and although the proposal does not comply with the provisions of the statutory development plans as a whole, the material considerations in this case indicate that planning permission should be granted.”

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Tags: NewcastlePercy StreetSt. James ParkStudent accommodationUrban Development
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Daniel Holland

Daniel Holland

Daniel Holland is a Local Democracy Reporter

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