Applause reverberated around Falmouth's council chamber on Monday night when around 80 residents reacted to the decision of town councillors to reject plans to create 128 student beds on the site of the Rosslyn Hotel.

The views of the residents were put forward by Pam Cowan, of the Save Our Falmouth group, who told the town's planning committee the proposed development would be "totally inappropriate" in a quiet residential area and out keeping with the low rise 1930s homes which surround it. "It will change the character of the area," she claimed.

She also raised concerns over housing so many students, with the associated noise, so close to Falmouth Hospital, where terminally ill patients are living out their days, and claimed, with so few parking spaces included in the plans, students would inevitably use Trescobeas Surgery's car park.

Councillors also heard from Adam Parsons, of APG Architecture, representing the developers, Studious Building (Falmouth) Ltd. He said comments made during consultation with neighbouring residents had been taken on board and that, although, there were only 17 car parking spaces, there is a "robust" travel plan.

He said: "The precedent has been granted further down the road. We are looking to manage the students in a controlled environment so not taking over housing in Falmouth town centre."

Councillors, though, are opposing the application and recommending it is refused by Cornwall Council with one reason being the lack of a detailed management plan.

Councillor Candy Atherton said appointing two student "prefects" to control any antisocial behaviour was no acceptable. "If you have a block like this, it has to be 24/7 monitored and managed and not left unsupervised," she said.

Mayor, Grenville Chappel, said: "This town is going to get a major student block, but it's finding the right place for it - not in someone's back garden. This is overdevelopment and is totally wrong for this site."

David Saunby added: "Over the last seven years as a councillor I have never experienced a more unpopular planning application. It would stick out like a sore thumb, be overbearing to neighbouring properties and take away their privacy and I think it would destroy people's lifestyles in this tranquil area. It is a hideous carbuncle."

Among the reasons for refusal put forward by the planning committee are that it would be out of keeping with the area, unneighbourly and an overdevelopment of the site. They also cited concerns over highways issues, the close proximity of the hospital and the lack of a a 24/7 management plan.