Local authorities have been given more power to control where houses are converted to multiple occupancy.
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Charnwood Borough Council is looking at requiring planning permission for houses to be converted to multiple occupancy accommodation.
Ms Mactaggart said the council was still working to stop people living in sheds and houses of multiple occupancy.
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An environment department spokesman said multiple occupancy homes were illegal but the changes would give an alternative to prosecution.
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Under revised plans, councils will be given discretion to decide if landlords need to secure approval for multiple occupancy lets.
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Multiple occupancy homes are defined as buildings with shared areas occupied by more than five people from more than one household.
That will enable the council to improve the standard of rental property, reduce multiple occupancy and stop the letting of garden sheds.
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Plans to implement a registration scheme for multiple occupancy homes on the Isle of Man will go to public consultation, the government has said.
Living in Newham is still fairly cheap: many of its houses are in multiple occupancy (the record, says the council, is 38 people in one property).
Houses of multiple occupancy and converted sheds are of concern to the council as they provide substandard accommodation, are considered to blight the town and in some cases are classified unfit to live in.
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