FIRE chiefs and police are investigating an early morning mystery fire which gutted a house in Clay Street, Burnley.

The house is next door to where Ivan Parker died in an arson attack in March last year and which has remained empty ever since.

Fire officers believe people may have been in the house when today's fire broke out and may even have been injured.

There was no-one there when they arrived at 5.45am. They carried out a search of the blazing building after neighbours told them people might be in the house.

Station officer Dave Jackson said: 'The house is so severely damaged that we don't know the cause of the fire. It is still under investigation and the sniffer dog is being brought over to rule out whether flammable substances were involved."

When fire crews arrived the house was well alight with flames and smoke coming from the windows.

Neighbours told them people could still be in the house and a thorough search was carried out.

SO Jackson said: "We made inquiries of neighbours about how many people might have been in the premises, it seems to have been a bit of an open house. "It is possible someone was in at the time of the fire and left the premises. If someone was in the house at the time they could be injured."

The alarm was raised by a driver on his way to work. He saw the smoke and drove on to the street and then banged on neighbour's doors shouting that a house was on fire.

Fire officers would like that person to contact either the police on 01282 425001 or the fire and rescue service on 01282 423240.

A woman who lives next door to the gutted house said: "I was asleep when someone came banging on the door shouting that the house next door was on fire and to get out.

"When I looked out it was fully engulfed, I got out quick."

Another neighbour Mark Aspinall rang for the emergency services.

He said he was also awakened by the passing motorist who was wearing a blue denim uniform similar to that of a warehouse worker.

Mark said: "I could hear the sound of breaking glass and the smell of smoke. I saw flames coming out of the windows and door, it was well ablaze."

He said two brothers had lived at the house for about four months but that he knew nothing about them.

In January this year Christopher Holgate received a life sentence for the murder of Mr Parker who he had falsely accused of being a paedophile.