Developers have been warned the public will not have "the wool pulled over their eyes" as a former hospital site has lost all of its affordable homes.
Houses which are more affordable are a key component to the masterplan for 45,000 homes which could be built in the Greater Norwich area by 2041.
They are viewed by many as important because they allow people to stay in areas where they grew up and not be priced out of the market.
Broadland District Council granted outline permission to BH Drayton 2020 Ltd in 2018 to build 29 homes on the site of the former David Rice Hospital in Drayon High Road.
Plans have also been lodged to build 12 separate properties on the Dryaton site, with the flexibility to be used as six-bed rehabilitation units for people with neurological conditions, to be run by Ethos Care Group, which is part of BH Drayton 2020.
Original plans included 10 affordable homes as part of the 29 proposed residential properties - 34.5pc of the total number - but an application to vary the Section 106 agreement and take them out of the development was approved by Broadland.
A viability assessment concluded "the site cannot be seen as viable if affordable housing is included".
The average requirement for affordable housing in a large development of 10 houses or more is around 30pc of the total number of homes and in Broadland the figure is 33pc.
The applicant's independent viability survey was reviewed by the council but Broadland saw that a clawback mechanism was included for the scheme, meaning affordable housing could be built if the development was more "viable than expected".
Gavin Elsey, BH Drayton 2020 director of development, said he was disappointed to drop the affordable homes blaming the situation on the "exponential rise in materials and acute labour shortage".
The move follows other smaller housing schemes in which affordable homes have been reduced because of viability issues, including one in Freethorpe.
But John Fuller, South Norfolk Council leader, said: "Councils are in the housebuilding industry so we know how much it costs to build a home.
"People can be assured that we have enough information to make sure builders don't pull the wool over our eyes.
"The cost to provide affordable homes is factored into the purchase decision so it is irksome to see a developer claim they haven't done their sums properly."
He added affordable homes were required for "the public good" and it was important to have a good mix of homes.
Mr Elsey originally hoped the Drayton development would have started by 2021-22 and was frustrated about the delay which he partly blamed on nutrient neutrality delays.
The Natural England ruling was brought in last spring in a bid to protect phosphates and nutrients running into the Broads and River Wensum and has prevented developers from building on sites or getting planning consent until they can prove they can mitigate against these concerns.
Mr Elsey, who said the 10 homes would remain one or two bedrooms, added: "We are committed to the site. There is a need for affordable housing in this area.
"Drayton is an environment where youngsters want to live near their parents but property is expensive."
Phil Courtier, director of place for South Norfolk and Broadland councils, said some things had to give amid rising building costs and inflation, and that was affordable homes in some circumstances, but only when projects were deemed unviable.
He added that the challenge of delivering affordable homes was dealing with the market economy but there was a need for new properties.
Mr Courtier said the council was working hard to come up with a solution to combat nutrient neutrality delays.
Roger Foulger, Conservative district councillor for Drayton South, said he was disappointed about the decision and there was a need for affordable homes and support for people facing homelessness.
Graham Everett, Drayton Parish Council chairman, said he would have preferred affordable homes on the David Rice site but it was better to get something built rather than it sitting empty.
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