POLICE are hunting two masked men who tied up two security guards in a house under renovation and then set fire to it.

Detectives investigating the blaze at the seven bedroomed home in Colne Road, Burnley, said the victims managed to escape but flames gutted the house.

Owner Ajmal Khan, 38, today revealed he had spent £150,000 renovating the house for his family to move in next month.

But the businessman, of Stonyholme, also spoke of his concern for the safety of the security staff.

He said: "My employees are in shock and were taken to hospital with smoke inhalation but the main thing is that they are OK. Mr Khan said he was contacted at 3.30am on Saturday after the three storey building was set on fire.

The security guards, who have not been named, were tied up back to back in chairs in the basement with tape.

Police today said inquiries were continuing and officers were due to speak to people in the area. They were also due to carry out forensic investigations.

Mr Khan said: "I think it all started about 2 to 2.30am. The police are still questioning the security guards. They said the attackers were Asian. I think it must be someone who wants us out of the area or has a grudge against us but we're not moving anywhere."

"The house was almost complete and my family were supposed to move in May. It has been gutted by the fire which is devastating. We spent a substantial amount of money on it. We budgeted about £120,000 to £150,000 and have spent somewhere in that region.

"We had installed a brand new central heating system, double glazing and had all new fencing. It had six bedrooms and we divided one in two to make seven. It is a very big house and most of it has been damaged."

The majority of the new windows in the front half of the house were blown out during the fire, the frames melted and several rooms were reduced to a stone shell.

Sergeant Steve Mounsey, of Burnley CID, said: "Two men wearing balaclavas made threats to the two people inside the premises. They tied them up and moved them to a part of the building adjacent to the canal bank where they remained bound with tape.

"A short time later they heard the sound of fire and windows breaking and managed to free themselves and contact the emergency services. They are both OK."

Mr Khan, who usually buys and renovates houses to rent, had bought the house at the beginning of the year and was renovating it with his brother.

He said: "As soon as the assessors have been in we want to start work on it again even if I have to pull builders off other jobs. We had the target date to move in during May and I still aim to have it re-done by then."

A neighbour, who did not want to be named, said: "The building was a mess for ages. It used to be a guest house and then it was empty and up for sale for a while. Then this guy bought it and has spent a lot of money on it, renovating it, putting new double glazed windows in and he started decorating inside. It was looking a lot better.

"When he had the lights on with there being no curtains up you could see inside as you came over the bridge and it looked very nice. Work has been ongoing for about five months. It's such a shame this has happened."