Crews were called to Manor Drive, close to Arkwright Way, in the early hours of the morning, at just before 1am, to tackle a blaze that had broken out in one of the houses under construction at the site.
Nearby residents were evacuated from their homes as fire crews arrived to tackle the fire.
Resident Jemma Penny said: “It was like a film, it was like nothing I have ever experienced before.
“All of us living nearby were evacuated and have not had much sleep as a result.”
More than 30 firefighters attended the incident, nobody was injured but an investigation has now begun into how it was started.
“More than 30 firefighters, including crews from Stanground, Dogsthorpe, the Peterborough Volunteer Fire Brigade, Thorney, Yaxley and Huntingdon, along with the water carrier from Ramsey, attended the incident.
“The crews arrived to find a well developed fire involving two houses under construction, which was spreading to other nearby properties and a skip. Using jets and hose reels they surrounded the fire to prevent further spread and extinguished it.
“Crews maintained a presence at the scene throughout the night to check for hot spots and ensure the area was safe.
“An investigation will be taking place to establish the cause of the fire.”