Close to $40,000 has been raised in less than a day for a Wellington family who lost everything when their house burnt down yesterday.

The Ulberg family's home in Kilbirnie was severely damaged when a blaze tore through it on Wednesday morning. Neighbours described the fire as "massive" and said it took over the house in a matter of seconds.

Luckily, everyone got out of the house safely – the couple's three daughters were inside the home when it caught fire - but the extensive damage means the family has been left with nothing but the clothes on their backs.

Neighbour Kelley Toy told the Herald the house has been "almost destroyed" in a matter of minutes.

"It's just crazy how fast it is. When you see it in person it's so shocking, and we really feel for the family - they just started renovating this house and no one wants to lose a home.

A second neighbour, who didn't wish to be named, said it felt like the house went up in flames in "seconds".

"It was all so fast. It's not so much the heat but inhaling that smoke – the fumes, you just have to get out because you can't breathe."

She told the Herald the house was "destroyed" and its owners would likely have to build an entirely new one.

A Givealittle page set up by a neighbour of the family describes them as "not just great neighbours, they are great friends and an amazing family".

"The Ulbergs are a humble family and they have not asked for us to do this, but we know they are hurting and that there are many who would love to help."

So far $39,850 has been raised in less than 24 hours.