A young family are struggling to come to terms with losing all their possessions after their house was gutted by an out-of-control blaze.

Annmarie Walters and her partner Ihaka Matekino are in shock tonight as they process how their Pandora Ave home came to be consumed by fire.

Ms Walters told the Rotorua Daily Post she is still trying to process the fact everything is gone.

The couple are just grateful their two-year-old son wasn't inside at the time - he was at a family member's house.

People in the street are already donating blankets, toys and colouring in books for the young family.

There has also been a fire at Rotorua's Ideal Electrical, on Depot St, tonight - that's been contained.