A decision on the second part of a £20m development which has been called the ‘gateway to Walthamstow’ has been delayed over the failure to include affordable homes.

The multi-million pound plans to improve the area around Walthamstow Central Station were halted in their tracks at a planning meeting, last night.

Solum Regeneration built a high-rise hotel, 69 homes and shops in the station's former car park, which were all opened last year.

Now, new plans, called phase two,  from the same developer have been unveiled for a 12-storey, 79-home block in the new car park and a three-store retail unit on the corner of Hoe Street and Selborne Road.

Plans were up for approval last night, but did not pass after councillors failed to see why the first development achieved 51 per cent affordable homes, yet the second half offers none.

“It seems to me that it is a fundamentally flawed approach,” Councillor John Moss said.

“If you are just looking at this site, there is zero affordable housing.

“It is deficient.”

Nick Clarke, applicant for Solum Regeneration, called the whole development a “major catalyst” for future development in Walthamstow.

But said the amount of social homes had to be taken together.

He said: “Across phase one and two there is 24 per cent affordable housing.

“Should the viability change the council has the ability to claw back affordable housing contribution which will be sewn into the section 106 legal agreement.”

SG claimed it was not ‘financially viable’ for them to allocate affordable properties.

Councillors Mahmood and Sharon Waldron both raised issues over the level of consultation.

However, the planning department said it was ‘satisfied’ by steps Solum had taken.

Other issues which were raised include the fact it is a ‘car free development’ and 65 spaces will be lost in the station car park because of the building structure.

Cllr Moss added: “I would like to see it made a condition that the developers tell new residents in very plain terms there is no parking, the whole area is CPZ and they should never expect to own a car.”

Chairman Councillor Stuart Emmerson said: “I believe all of the properties in the last development sold at market price.

“At this point I am struggling without looking at those figures to see how we can achieve 51 per cent affordable housing in the first development, but nothing this time.

“I do not feel comfortable signing this off at this stage without more information on the viability assessment.”

The case has been deferred until the next planning meeting.