Shropshire Council said the issue at the site near Tenbury Road, Clee Hill, is temporary and the fence was due to be removed by Tuesday.
Shropshire councillor Richard Huffer, who represents Clee, said: “Over the last week, the developer has erected fencing across the back windows of the residents of Tenbury Road.
“Shropshire Council has always wanted this problem to go away rather than dealing with it. But it is at fault in allowing this situation to continue.
"Residents are stressed out. This was a preventable situation."
A statement issued by Shropshire Council said: "The impact is understandably upsetting for the residents and we are keen to find a resolution."
They added that the developer has assured the council that the fence will be removed.