Cheers and applause greeted a decision by Dorchester town councillors not to build affordable homes on four playing fields it owns.

Magna Housing, which owns the Elizabeth Place play area, will be urged to take account of the decision and not build on the site.

The controversial proposal could now see the green spaces improved with neighbours being asked for their ideas.

Dozens of residents crammed into the town council chamber on Tuesday evening making it one of the best attended Dorchester Town Council meetings in recent years.

The council had carried out a public consultation at two public meetings in February with the help of local social housing provider, Magna. Opposition to the idea had been almost unanimous.

Tuesday’s decision will also result in the council talking to Magna about its continued management of the Elizabeth Place play area and coming to a formal agreement on the arrangement – something which had lapsed in 2012.

The other sites looked after by the town council are Sandringham annexe, Fortress Green, Mellstock Avenue and Poundbury Crescent.

Mayor, Cllr Susie Hosford, told the meeting: “It was very clear what people thought about the idea so we will not pursue it, although there remains a pressing need for affordable homes in the town.”

Cllr Gerald Duke said he was worried that Magna could still bring forward housing proposals for the Elizabeth Place play area: “We hope they will recognise the concern of local people and the council view…I would like to see something back from Magna saying they are happy to allow the town council to continue to manage the area and won’t proceed with any plans they might have for housing there.”

He suggested meeting with the housing provider and negotiating a 25-year lease for the town council to continue maintaining the site.

In the public section of the annual town meeting later in the evening residents called on the council to manage its sites in an ecological sensitive way, including a ban on the use of pesticides and slug pellets.

Philip Jordan said protecting the town’s green spaces for future generations was vital: “The destruction of nature is as dangerous as climate change. These are very sensitive issues,” he said.

Linda Poulson, who has campaigned to make Dorchester a hedgehog-friendly town, backed the idea of managing council land in a more ecologically sensitive way: “You have got to preserve the smaller species to save the larger ones,” she said.