Plans to convert the former Castaways shop in Crewe into an HMO have been refused after council officers said the property was not marketed for commercial use as long as the applicant claimed, a planning report states.

The application, from Capital Housing Ltd, to turn the West Street property into an eight-bed house in multiple occupation had originally been recommended for approval by Cheshire East planners.

It was due to have been considered by the southern planning committee last month but was withdrawn from the agenda because the council had not received all the relevant paperwork.

Last week planning officers, acting under delegated authority, refused the scheme because it would result in the loss of a retail unit and the applicant had failed to provide sufficient evidence the premises had been marketed for 12 months for commercial use, as required by policy.

The planning officer's report states: "It is acknowledged that the proposal would bring a currently vacant building back into active use, securing its occupation and maintenance.

"The site is located within a mixed-use area, where the proposed residential use would not be wholly out of place within the wider context of the area."

But it adds: "As the development proposed would involve the loss of a main retail centre use, it must be demonstrated that there is no reasonable prospect of another retail centre use continuing in the premises, due to a lack of market demand."

It says the applicant therefore needed to demonstrate that the property had been properly marketed through a commercial agent for at least 12 months.

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The report continues: "It has been stated by the applicant that the property was marketed by BJB for approximately two years before being put up to auction in April 2026.

"However, conflicting information has been submitted through a number of representations that disputes this.

"Subsequently, the commercial agent BJB was contacted directly and confirmed that the property was only marketed for around six weeks, before going to auction…

"This is not considered to represent a sufficient marketing period to represent a lack of market demand."