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Isn't this all a bit of bollocks given the windows were fitted before the regs aimed at preventing useful windows came in to force? (I assume - we also have deathwindows (tm) and nobody gave a shit about those, fitted in 1995 or something).
Other flat, built circa 2005 also has deathwindows with a manually overridable catch.
So it's just bullshit overreach by the 'surveyors' and the clueless buyers' solicitors.
Approved Document Part K is the main regulation.
There is a line in it that says:
But it is within a part of the regulation that does not apply to dwellings (which often people don't realise). The fact you have a balcony is not necessarily relevant - perception of risk is different, often windows have a lower bottom edge than balcony handrail, and you might be expected to have a different awareness of eg when your kid is on the balcony, as opposed to just generally in the flat.
People often fit them to domestic windows for reduced risk of falling. However you want to think about whether the window is a potential fire escape window (1st or 2nd floor only).
On the ground floor, limiting the opening is often done on street side so that people don't walk into the open window - again there is a regulation (no protruding more than 100mm or fit a guard rail) but it does not apply to dwellings.