Two out of three houses on a Kāinga Ora-owned property in Whakatāne's Soutars Avenue have now been damaged by fire.

Police and Fire and Emergency New Zealand are investigating after a fire broke out at number 9A on Monday night.

The blaze, which police have confirmed as arson, comes just over a year after another house on the site was set alight.

Of the three houses – 9A, 9B and 9C – only one remains habitable.

Police and the Whakatāne Volunteer Fire Brigade were called to the property at 9.46pm.

Firefighters promptly extinguished the flames, stopping them from breaching the exterior of the house.

However, the interior damage was 'extensive”, Detective Senior Sergeant Paul Wilson said.

The attack has saddened Kāinga Ora, with Bay of Plenty regional director Darren Toy saying major work would be needed to bring the house back to a liveable standard.

'There is no timeframe on this yet.”

He says the home had been temporarily vacant at the time of the fire, with access prevented.

Wilson says the doors and windows were boarded up, but police located some property that suggested the home was being lived in.

Items of interest, which might link potential suspects and assist with the investigation, had been sent for analysis.

The address was known to the police, after conducting search warrants at the property last year.

Emergency personnel also reported finding the front door open when they arrived.

In March last year, neighbouring 9C was set alight in another arson attack, which killed three pets.

The fire happened during the tsunami evacuation.

Toy says refurbishment of this house was nearly complete but Kāinga Ora was awaiting interior materials currently in short supply to finish the work.

'Covid-19 interruptions have also meant progress was slower than we wanted.”

A FENZ spokesperson says the two fires do not appear to be linked.

-Whakatāne Beacon