Where there was no room - in the North (3)
I believe the answer is:
inn
'where there was no room' is the definition.
(I've seen this in another clue)
'in the north' is the wordplay.
'the north' becomes 'N' (abbreviation).
'in'+'n'='INN'
(Other definitions for inn that I've seen before include "Resting place" , "Tavern with lodgings" , "Commercial premises" , "bar" , "Small hotel or country pub" .)