Updated 5.16pm: Residents are allowed to return to their homes after a plantation fire at Pines Beach in Canterbury.

40 homes had to be evacuated after the fire started around two this afternoon.

Police say the cordon established following the fire was reduced at 6pm so all remaining residents can return home.

Firefighters will be working within the reduced cordon for the next one to two hours dampening down hot spots.

A scene examination will also take place in order to determine the cause.

Police say the prompt reporting of the fire not only minimised the impact on the Pines Beach community - but also resulted in no residential properties being damaged or lost.