The building of a 165-homes estate in Southam means the loss of a play and kick-about area.
The open space off Mayfield Road was on land leased by Southam Town Council from the Coventry Diocese.
But Taylor Wimpey has been given planning permission to build homes on land bought from the diocese and also wants the adjacent open space.
Debbie Carro, Clerk of Southam Town, said it had only been able to renew the lease on a yearly basis for the past three years, and before that it was a 14-year lease.
The land had goal posts and in the past there were BMX tracks on it but the council was not able to develop it as more of a play and amenity area because of the short leases.
She said: “Obviously the town council is disappointed that it was not able to negotiate a long lease on a public open space - there is a deficit of public open space in Southam.”
But a spokesman for the Coventry Diocesan Board of Finance (CDBF) said officials tried to get an extension of the lease, and added: “This piece of land forms part of a larger area of land upon which the CDBF has entered into an option agreement with Taylor Wimpey
“The option agreement requires the CDBF to deliver up the land with vacant possession. Since the lease was ending, Taylor Wimpey was consulted about a temporary extension to it but was not content for this course of action to be pursued.”
Plans for the estate include “public open space”.