As a 16-year-old apprentice, Newhouse enjoyed a regular place in the Chester side during the 1988–89 season, with his first goal coming in a 3–0 win over Huddersfield Town in September 1988.
By the 1989–90 season, Newhouse was a member of the England youth squad and a full-time professional, and in February 1990, he moved to Wimbledon for an initial fee of £100,000.
He joined Port Vale on loan in January 1994 but only made two substitute appearances under John Rudge and did little to help the "Valiants" to promotion out of the Second Division.
He signed on loan with Torquay United in December 1995 and scored twice in four appearances for a side that would finish the 1995–96 season bottom of the Football League.
[5] Despite scoring twice on his debut in a 6–0 win over Mansfield Town, he played just twelve times for Brighton, and only started once.
[3] Manager Micky Adams preferred to instead utilise Darren Freeman and Gary Hart in the first half of the 1999–2000 campaign, whilst both Warren Aspinall and Lorenzo Pinamonte also joined in the autumn.