ARMED officers were called to the scene of an alleged arson attack after reports that a man involved in a neighbourhood dispute was carrying a gun.

Three fire engines arrived at Anchor Avenue, Darwen, at 4.58am yesterday after people were thought to be inside a terraced property when a fire broke out.

The property's window had been smashed and the living room area was well alight when they arrived.

However, firefighters then had to move away from the scene after police said they had received unconfirmed reports that a man had been seen in the vicinity with a shotgun.

Armed police attended and a full search was made of a nearby property, along with a car parked near the scene of the fire. The officers remained outside the two houses involved for several hours.

A 35-year-old man was arrested on suspicion of arson and is being questioned by detectives. Another man is still being sought in connection with the incident.

Police said they were unable to find any evidence that anyone with a firearm had been at the scene. It is thought that the incidents may have been part of a dispute between neighbours, they said.

One resident attempted to dampen the flames with a garden hose. He said: "I could hear some bangs and pops, which must have been the fire taking hold. I looked outside and saw flames licking out of the window. I got the hose out because I didn't want it spreading to the other houses in the row."

Firefighters then entered the house and got the blaze under control. Crews used thermal imaging cameras to establish that no one was inside the building. The current residents are not living there as refurbishment work is being carried out.

The downstairs of the house was severely damaged by the blaze and the upstairs suffered significant smoke damage.

Ian Taylor, Fulwood fire station manager, who was in charge at the initial call out, said: "There was only one seat of fire and that was in the living room, close to the window.

"The fire was well developed when we arrived but we were able to deal with it quickly. Fortunately no one was inside when the fire started."

A fire crime scene investigation examined the scene and fire investigation dogs were used to detect if any accelerants were present in the burnt out property.

Detective Inspector Andy Hulme, investigating officer, said: "We are treating this incident as a suspected arson and I urge anyone with information about what happened to contact police."

Anyone with information should call 0845 1 25 35 45 or Crimestoppers anonymously on 0800 555 111 .