TEIGNBRIDGE Council Planning Committee has deferred a decision on whether to grant permission for a 62-home project in Kingskerswell.
Councillors described the plans for land off Charles Road as 'a blot on the landscape' and 'telly tubby land' at the meeting.
The committee first looked at the scheme in November when it said it wasn't happy with the designs of the three-storey homes and raised concerns about them overlooking others.
They also didn't like that all 16 affordable homes had been grouped together.
It asked developer Cavanna Homes to rethink the design, but the committee was not impressed with the tweaks.
Matthew Cleasby, the developer's architect who attended the meeting, described the town houses as 'cottage style' and said they had now reduced the three-storey homes to two and a half.
They also said they had changed the designs to be more in keeping with the village and the homes would now use a 'local palette' for rendering and brickwork.
In response, Cllr Anthony Ballinger said the homes were 'a blot on the landscape' and they would not blend in with the surround bungalows, which were built in the 1960s.
He said the design would be better if smaller houses were put at the front of the development with the large homes towards the back.
Cllr Dave Matthews agreed and said the design looked as it 'they are trying to put a box (the bungalows in Charles Road) next to a mansion'.
Resident Vera Whitting, objected to the application and claimed at the meeting 'Cavanna had ignored the points' raised by the committee in November.
She also claimed the homes would also 'look right down' into her property and would deprive her of privacy.
Her other major concern was the planned play area, which would back on to bungalows in Charles Road as she thought there could be issues with anti-social behaviour and noise.
Planning chairman Cllr Humphrey Clemens suggested a site visit with the full plans and the committee deferred the application.