Sainsbury’s faces a battle to build its latest superstore after it emerged that affordable homes comprised just 4% of its proposed development.

Just 27 of 683 homes in the Ilford development will be available for affordable rent. Local campaigners told The Guardian that the decision was “insulting”.

The borough of Redbridge, in which Ilford is located, had originally opposed the development but changed its mind on Saturday in a late u-turn.

The case will go before a public inquiry on Tuesday.

The 4% affordable homes figure falls short of the 40% target put out by City Hall, which plans to build 17,000 affordable homes every year.

It also misses the 50% target of Redbridge. The borough has 8,000 households on the affordable accommodation waiting list, while another 2,400 live in temporary accommodation.

Sainsbury’s said: “Our plans will help kick-start Ilford’s future regeneration by driving growth and job creation, as well as provide a broad mix of housing for local people.

“We look forward to the outcome of the appeal. We have agreed with the council to review the provision at certain points throughout the development, and if we can increase the number of affordable homes, we will.”

In London, the grocer is building more homes in the space above its stores. The Ilford project is its largest yet and comes after it built 650 homes around its Nine Elms store and 500 homes above a store in Fulham.