Residents of Hospital Street in Pietà could feel the heat on Sunday night when a parked car was burnt to a crisp and the façades of two houses were badly damaged in a blaze that may have been started deliberately.
The police said they were called to the scene at about midnight, where they found a Peugeot 106 engulfed in flames.
The Civil Protection Department was called to put out the fire.
The police are suspecting arson.
Magistrate Doreen Clarke is carrying out an inquiry.