A man has been charged with arson in relation to the massive fire that destroyed a vacant Dunedin boarding house on Friday last week.

Detective Senior Sergeant Rob Hanna, of Dunedin, said police had charged a 57-year-old man with arson in relation to the Phillips St fire.

Neighbours said last week two or three homeless people slept in the derelict house periodically and it was feared someone may have been trapped in the fierce blaze.

“Thankfully, no-one was injured in the fire, however several adjacent properties were damaged,” Rob Hanna said.

“The quick response and containment by Fire and Emergency New Zealand prevented more damage to surrounding properties.”

The massive fire destroyed a vacant Dunedin boarding house on Friday last week. Photo / Dean Smith

The property was in the process of being demolished after Christopher Paul Bonisch, 51, was killed in a fire in the building last year.

However, demolition on the site had been halted in September after WorkSafe issued a prohibition notice on the property due to safety concerns.

Neighbour Lance Dyke said he alerted emergency services to the fire early on Friday morning after hearing a big “bang”.

Police have thanked members of the public who assisted with the investigation after the house fire on Phillips St in Dunedin. Photo / Dean Smith

The heat of the inferno caused windows of Mr Dyke’s home to crack and paint to blister.

The entire back of the burning building looked like a wall of fire, he said.

“It was scary when all you could see was a wall of flames. You couldn’t see the house at all.”

Police have thanked members of the public who assisted with the investigation.