To create space for six extra rooms, Dinesh Chaddah has applied to the council for permission to add a pitched roof to the William Hill organisation building on Felling High Street.
Previously the developer was given the green-light to turn the building into a 16 bedroom room bedsit, but now wants to add the additional rooms and a staircase for access.
Although part of the building houses a William Hill bookmakers, the majority of it is storage space, according to a design and access statement submitted to the authority.
It said the living area would be more spacious than in other houses of multiple occupation.
The statement added: “The conversion provides large bedroom spaces, which will allow the rooms to be laid out to create specific areas of bed and living within the open plan spaces, providing a sense of space that is not normally associated to this style of accommodation.”
Gateshead Council is expected to decide on the application by 8th April.