People living in Old Mill Cottages, on the western edge of the Dunton Hills Garden Village, say the planned buildings up to four storeys high would be surrounding them on all three sides.
A Traveller site a short distance away also features in the plans.
Brentwood Council has agreed to work to impose conditions to extend the buffer between Old Mill Cottages, in Tilbury Road, and the development to 30 metres as well as limiting the height of those buildings to nine metres.
Richard Newman, of the Old Mill Cottages Association, said they were disappointed their request for the homes to be bought had been turned down.
He added that the family of one owner who died took 18 months to sell – but only at a price 20 per cent below its first valuation.
He told a planning committee meeting on July 29: “We cannot afford to lose 20 per cent of the value of our homes. We cannot understand why it’s being reasonable and fair to surround our properties on all three sides with a wholly inadequate buffer of 30 metres.
“We also don’t understand why the Traveller site needs to be in our corner development and why we didn’t have representation of meeting to discuss its location.
“The development site is massive. Our plot and scale is tiny. Surely you agree we should be given better protection?”
Another homeowner said: “No regard is being given to our homes or the disruption we will face. We are just four homes which will be slowly engulfed by a massive development.
“Our property values have plummeted. We are left unable to sell, unable to move with no clear recourse.
“This isn’t just a planning matter. It’s a matter of humanity. We’ve all lived here nearly 30 years. Our homes, our mental wellbeing and our lives are being sacrificed with no fair mitigation.”
Charlotte Robinson, head of planning at CEG, which is promoting development, said: “Numerous meetings have been held with the owners of the properties over the years.
“I accept there are strong feelings by the owners of Old Mill Cottages.
“However, I wish to reassure you that CEG and the landowners have listened to their concerns and for example have agreed to an additional condition which limits the height of new homes to two-and-a-half to three storeys within 60 metres of the cottages.
“For reference, the Travellers site is a minimum of 200 metres away with intervening open space and new housing proposed.
“The process of consultation and engagement with all stakeholders, including the owners of the cottages, remains ongoing and will continue throughout the reserve process and other approvals.”