THREE houses have been destroyed by fire at Coalcliff on Friday night.

Emergency services were called to Lawrence Hargrave Drive at Coalcliff shortly before 7.30pm, responding to reports a house had caught fire with strong winds spreading it to two neighbouring properties.

Three other homes nearby were evacuated as a precaution but fire fighters from Fire & Rescue NSW were able to contain the blaze to the first three buildings.

Sixteen people were evacuated from the destroyed homes; they are staying with family and friends. No injuries have been reported to police.

Families evacuated from adjoining houses have been allowed home.

The cause is still being investigated.

Lawrence Hargrave Drive was closed while mopping-up operations were undertaken.