Police are on the warpath this morning over Dunedin's couch-burning culture, calling it a thing of the past which students need to stop.

Flames from a sofa set on fire at the back of a Castle Street property ignited the wall of their house, during a big party overnight.

Several hundred people were spread between the house and a neighbouring property - and on the road.

Sergeant Kane Shaw said when police arrived to control the crowd, they noticed the back of the house was on fire.

"When you mix alcohol and fire together, it doesn't make for a very good recipe. We ask that people just take common sense and just don't start fires with couches."

Shaw said it's time students grew out of the practice of burning sofas.

"It's just not the thing to do anymore. I know it's a thing been done in the past, but you just can't keep doing that sort of stuff. It causes danger to people and to property."

Police say a tragedy was only narrowly averted last night, and it's time students realise how dangerous it is to set fire to furniture.