FAMILIES in Molescroft are delighted the council is challenging proposals for 163 new houses on agricultural land.
National developer David Wilson Homes wants to create a major housing estate on land off Driffield Road, southwest of Beverley Ambulance Station.
But councillors voted against the scheme at a planning meeting, saying there were problems with connecting roads and affordable housing.
Molescroft homeowners formed the North Beverley Action Group to fight the development.
Group member David Tucker said: "The council should not be bullied into making hasty planning decisions by opportunistic builders who clearly have their own financial interests at heart and not the future of this historic town.
"It is quite clear the majority of residents in northern Beverley are strongly opposed to this proposed housing development."
David Wilson Homes has already appealed to the Bristol- based Planning Inspectorate, meaning a government official will have the final decision.
Mr Tucker said: "The builders have now taken this application to the national appeals process in the hope that, having had their application firmly turned down by the council, they can get their own way through the back door.
"Let us hope, for the sake of this town, these appeals are as firmly rejected as were their initial building applications.
"Let Beverley people and the council determine our future, not builders poaching our prime greenfield sites and looking for a quick buck at our expense."
East Riding Council officers recommended councillors vote against the homes.
In a report to the Planning Committee, they said there were "serious failings" in the plans.
The report said: "The application fails to provide the required level of affordable housing on the site.
"The information in the submitted Transport Assessment is inadequate and incomplete and the Highway Authority is therefore unable to make an adequate assessment of the implications of traffic.
"The layout does not provide sufficient space for a good-quality landscaping scheme."
Officers were worried there was not enough space for play areas and too many of the houses would be detached.
A public inquiry will be held before the planning inspector makes a decision.
It will start on Tuesday, April 23, and last for six days.