Shrewsbury Developments wants to build eight houses in the tiny village of Hookagate on the site of the former Cygnets pub.
Longden Parish Council objects to the plans saying the houses are too crowded on the site, with not enough parking and nowhere for bin storage.
Councillors said the road would not cope with the additional traffic and that the proposal would increase the number of homes in the village by 20 per cent.
Eight villagers have also objected.
Planning officers for Shropshire Council say the scheme would provide eight relatively affordable homes likely to be aimed at first time buyers.
"It would be a benefit for those wishing to get on the housing later," a report to next week's central planning committee says.
The report says there would be enough parking space, two per dwelling, and says the houses would fit in with the local street scene.
The site is within the community cluster of Longden with a housing guideline of up to 50 more homes for the area being build by 2026.
"It is acknowledge that with 19 houses completed and 33 committed this would result in the addition of two further dwellings over the current figure of 52."