A GUEST house owner is today counting the cost following a blaze in which three people were rescued by firefighters.

The fire service and police are now investigating the fire at Red Rose Lodge in Nelson, which is believed to have started in the kitchen and dining area.

Firefighters were called to the bed and breakfast in Albert Street at 10.30pm and arrived to find one person trapped on the first floor and two on the second floor.

Officers wearing breathing apparatus went into the building and rescued all three people. They then searched all 20 rooms in the property but no one else was inside.

The person rescued from the first floor was taken to Burnley General Hospital suffering from severe smoke inhalation, but the other two people rescued refused treatment.

Some residents had already escaped from the building after being alerted by the fire alarm.

Mohamed Tufel, owner of the bed and breakfast, was not at the building when the fire started. He said 16 people were staying in the building at the time of the fire.

He said: "It seems three people had to be rescued, but everyone is fine thankfully.

"The fire caused smoke damage more than anything else. Because of the damage we asked the guests to leave and we will be closed today while we clean it up.

"The main thing is everybody is OK and it is not as bad as it seems."

A jet and two hose reels were used to put out the fire, which caused severe damage to the kitchen and dining area and smoke damage to the rest of the property.