Lifting planning restrictions on student flats for 12 months will have a 'very severe' impact on the North Staffordshire hotel market, a businessman has claimed.

Integritas Property Group (IPG) is asking for permission to use the long-delayed Deakin's Yard in Newcastle as serviced apartments for the general public for a year, as it was not finished in time for the new academic year.

But Jeff Nash, owner of the Lymedale Suites Aparthotel and Potbank Hotel, is objecting to the application, saying Deakin's Yard would take trade away from his businesses and other hotels in the area. Once it is completed, Deakin's Yard will provide 273 flats along with communal facilities such as a gym and cinema room.

Mr Nash says 'dumping' this many serviced apartments on the market would harm local hotels which have already been hit with declining demand since the pandemic. IPG insists that Deakin's Yard would not be competing with the Potbank Hotel or Lymedale Suites, as it would be aimed at different customers.

A local business man says the proposed change of use would have a 'devastating impact' (LDRS).

But Mr Nash says that when similar variations were permitted at two other student housing complexes in Newcastle, his income fell by £250,000 in 2022/23. He said: "Other hotels in the area might not have been aware of what was happening. But I was because I could see the vans of the contractors who'd previously stayed with us were now parked up outside the student flats. When the variation ended, we got that business back.

"I'm all for competition when it is coming from other businesses which are here for the long term. But this sort of thing is completely unfair – they're dumping 273 serviced apartments on the local hotel market . As this is just a temporary variation, they haven't had to go through the full planning process that you'd have to do for a hotel. We also have to pay VAT and other costs.

"If the council allow this they will be setting a very dangerous precedent, as there will be similar applications in future. The council should care more about supporting local businesses, rather than allowing these short-term measures to help companies from outside the area."

In his objection, Mr Nash says that the short-term proposal for Deakin's Yard will have a 'very severe detrimental long-term impact' on his businesses and the wider market in the area, potentially threatening jobs and future investment. According to Mr Nash, the local hotel market is already suffering due to factors such as the rise of remote working since the pandemic, and the cancellation of HS2's northern leg, which has resulted in fewer contractors staying in the area.

Work on Deakin's Yard began in 2017 but the project stalled after the original developer ran out of money (Newcastle Borough Council).

Work on Deakin's Yard, previously known as the Sky Building, began in 2017 but the project stalled after the original developer ran out of money. IPG took over the scheme last year and was aiming to complete the building in August.

The scheme's planning permission includes a condition restricting the accommodation to students. IPG is applying to Newcastle Borough Council to have this condition lifted for 12 months, with the building reverting to student accommodation in time for the next academic year.

Mitchell Walsh, chief executive at IPG, said: "At Integritas Property Group, we are highly committed to being part of the regeneration of Newcastle-under-Lyme and attracting investment into the town centre. We have undertaken the transformation of a previously neglected building, long considered an eyesore, and are driving it towards completion.

"Unfortunately, due to our very tight 10-month build schedule, we have missed our crucial September deadline by just a few short weeks. However, rather than leaving it vacant for another 12 months, we see this as an opportunity to soft-test its systems and services. This building is a focal point for the local community, and we have strived to deliver a market-leading student development that will stand the test of time.

"Deakin's Yard is a brand-new facility specifically designed for students; it is not a traditional hotel. This is not a competing project to the Lymedale Suites Aparthotel in Newcastle or the Potbank Hotel in Stoke, as this site offers state-of-the-art communal amenities, including a cinema room and gym, typically found in boutique hotels and shared apartment developments."

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