Two of the three homes on Manchester Road in Slaithwaite, which sit precariously on the hillside backing onto the River Colne, were evacuated last night after concerned locals called emergency services.
It is understood the hillside suffered a minor landslip in 2018, when a tree came down, and the furthest house on the end has remained unoccupied.
But fire fighters who arrived at the scene on Wednesday evening said the ground beneath the buildings could be audibly heard to move, and occupants in the other two homes were advised to stay elsewhere overnight.
Watch commander Matthew Green, based at Slaithwaite fire station, said: "We could actually hear the land falling and, as you can see from the picture, it looks like it could be potentially perilous."
Mr Green told The Yorkshire Post that Kirklees Council were due to send a surveyor to the scene today to assess the situation and evaluate its safety.
There are concerns that the current heavy rainfall from Storm Christoph and the River Colne below may be making the hill even more unstable and presenting a risk of further landslip.
Reports show that planning permission for the homes was submitted in 2013 by a Mr S Glover.
One Slaithwaite resident, who did not want to be named, said that old, aerial photographs of the site show that there had been buildings on the same site in 1940, which may explain why developers had been allowed to rebuild on Manchester Road more recently.
"The problem has arisen, I believe, because water is seeping through the hillside some depth below the buildings," the resident said.
A Kirklees Council spokesman said: “The council have attended the site of a landslip in Slaithwaite today. There does not appear to be any evidence of further land movement, which would suggest an immediate danger to the property, we have spoken to the property and landowners and advised them of their options to fully assess what action may be necessary.
"We have limited actions available to us in respect of landslips, however we sympathise with the residents. As this remains a concern, we will continue to provide support and advice where possible.”
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