Schooner pub assures customers it's 'business as usual' after HMO plans
Schooner pub says 'business as usual' despite HMO plans

The Schooner pub in Gateshead has moved to reassure customers that it is "business as usual", following the emergence of plans that could see the venue converted into a house in multiple occupation (HMO).

A planning application was lodged with Gateshead Council to turn the South Shore Road pub into an HMO, with documents submitted to the local authority claiming that its operation as a pub was "no longer considered commercially realistic".

Owner addresses concerns on Facebook

The prospect sparked a social media outcry, prompting the pub's owners to apologise on Facebook for the upset. Owner Paul Smith said the idea dated back to a time earlier this year, before the pub was rebranded under its famous Schooner name.

The pub was previously closed in 2024 and reopened as The Fog on the Tyne, before reverting back to its former moniker. Smith said that "things were looking a little bleak" six months ago and bosses "didn't know if restoring The Schooner branding and ethos was likely to work".

Planning permission sought for alternative use

Explaining the rationale behind the potential HMO conversion, Smith wrote: "At a meeting in May 2026 we decided to try and explore the possibility of selling up. We met with planners and builders and decided that seeking planning permission to turn the building into four or five flats would add another string to our bow when the time came. We did not see any potential for doing this expensive work ourselves but felt this might open up the market to buyers as pub freeholds are not as marketable as they once were due to continually spiralling costs."

However, he said that the return of The Schooner had since been "well received" but that it "wouldn't hurt" to have planning permission granted for an alternative use of the building. Schooner customers were told that it "is not, nor was it ever a plan" to use the pub as a bail hostel or to house refugees.

Pub's future and upcoming events

The statement adds: "The Schooner is doing well under our excellent young manageress and you seem to be enjoying it as it is. We have hundreds of bookings in December, sold out events and a huge and exciting live music event scheduled for our outside stage in July 2027. I'm personally sorry if our application has upset people, it was never my intention and I'm always around if anyone wants to reassured. So, it's business as usual, and as a very popular previous owner used to say 'I'll see you at the bar'."

In the planning application sent to the council, it was argued that factors including rising costs and a lack of passing trade has led to a "prolonged period of declining viability as a public house". It added that turning the building into a HMO would provide a "viable residential use which reflects current housing demand whilst ensuring the building remains occupied and maintained".