A new social housing scheme in Londonderry may be delayed following a suspected arson attack.
Seventeen firefighters battled for three hours overnight to put out the blaze that gutted two houses under construction on the Letterkenny Road.
A family whose house backs on to the scheme said they were scared that the fire would spread to their house.
SDLP councillor Seana Hume who attended the scene said people in the area were in desperate need of the new houses.
"I am absolutely appalled and disgusted at this arson on these new homes," Ms Hume said.
"I was in the area last night and this morning and it is a terrible sight to see.
"Two newly constructed houses are completely ruined and will have to be demolished and rebuilt," she added.
"This fire will stall the development of site for a number of weeks, and those who would like to be housed there will have to wait even longer to be allocated a property."
She called for anyone who noticed any suspicious activity in the area on Thursday night to contact the police.
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