The blaze is believed to have originated in a row of conifer hedging in Langrick Road at the rear of the affected homes on Coningsby Close.
It was reported to the fire service at 12.42pm on Tuesday by one resident who spotted the bushes on fire from his garden.
Steve Slater from Wyberton Wombles litter-picking group contacted the Standard about the incident.
He said: “This area is an area that we, the wombles, clean up on a regular basis and have reported fly tipping.”
Mr Slater says his volunteers also regularly find worrying evidence of drug taking and drinking at the ditch on Langrick Road.
These are concerns echoed by residents of Coningsby Close.
Resident Peter Sharman, who took these photos of the fire damage, contacted us to say: “The land at the back of the houses is basically a ditch with a hedgerow either side.
"In the middle of this, residents have been seeing drunks and people taking drugs in there on a regular basis, and finding empty cans.”
While the fire service say the cause of the fire is ‘unknown’ – some residents are concerned the fire may have been started deliberately.
Resident Sean Malone told us: “I was in my garden when I heard a crackling sound and then saw a 10ft leylandii (conifer) on fire.”
Mr Malone said he attempted to put the fire out with his garden hose, but ended up having to call out to his wife to ring the fire brigade.
"I’ve been finding beer cans and evidence of drug-taking in that ditch on a regular basis,” said Mr Malone. “So whether deliberately or by accident, I think someone set fire to it.”
Mr Sharman added: “This fire has completely destroyed my neighbours’ sheds and their belongings, destroyed a garden swing, burnt fencing and melted a water butt among other things.
"If the fire service had not got there when they did it would have spread to other properties.”
A spokesperson for Lincs Fire and Rescue said: “This incident resulted in severe damage to 16m of conifer hedging, 16m of wooden fencing, and two wooden sheds, and their contents. The cause of the fire is unknown.”