Nearly half of the shared ownership homes at a major east London development remain unsold after prospective buyers struggled to meet affordability rules, planning documents reveal.

Newham Council has agreed to relax a condition governing the sale of 87 shared ownership flats at Deanston Wharf in Silvertown after housing provider Legal & General Affordable Homes argued the requirement was preventing sales.

The homes form part of the affordable housing provision at Ballymore's Deanston Wharf development on Royal Crest Avenue.

Under the original planning agreement, residents were expected to spend no more than 40 per cent of their net household income on combined mortgage repayments, rent and service charges.

However, council documents show the rule was proving a significant barrier for potential purchasers.

Planning officers said the condition's "rigid definition" had resulted in buyers being turned away despite strong interest in the development.

According to the report, the homes have been continuously marketed since August 2023. More than 5,200 enquiries and 527 viewings resulted in just 43 completed sales, leaving just under half of the flats unsold.

Shared ownership allows buyers to purchase a percentage stake in a property while paying rent on the remainder, alongside service charges.

A current price list published by Legal & General Affordable Homes shows that a 25 per cent share in the smallest one-bedroom flat costs £96,875. Buyers must also pay £667 a month in rent on the remaining share, plus a monthly service charge of £319.70.

For the largest three-bedroom apartment, a 25 per cent share costs £161,250, alongside monthly rent of £807 and a service charge of £531.62.

Council officers concluded that, in many cases, those costs pushed housing expenses above the 40 per cent affordability threshold.

Legal & General Affordable Homes subsequently asked Newham Council to amend the requirement, arguing it needed greater flexibility to assess affordability on an individual basis.

The council agreed and approved a change allowing buyers to proceed where a detailed affordability assessment demonstrates that spending more than 40 per cent of their income on housing costs would still be considered affordable.

Planning officers said the approach aligns with guidance from the Greater London Authority, which recognises that some households may be able to sustain a higher proportion of their income going towards housing while still benefiting from home ownership.

A spokesperson for Legal & General Affordable Homes said the company's aim was to help people onto the property ladder "responsibly" and support sustainable home ownership.

They said: "Shared ownership affordability is assessed based on a household's individual circumstances.

"The amendment brings greater flexibility in line with the GLA's approach, allowing a detailed assessment of each buyer's finances rather than relying on fixed thresholds.

"This is not about weakening affordability safeguards, but ensuring customers can proceed where a detailed assessment shows their home is affordable and sustainable."

The housing provider did not say whether it had considered reducing rents, service charges or purchase costs to improve affordability for prospective buyers.