POLICE are investigating an arson attack which severely damaged a terrace house in Nelson.

Firefighters called to the house in Percy Street at 3.30am yesterday sun found someone had broken in and set fires in three places in the living room.

Scenes of crime officers searched the building for clues.

The rented property was furnished but no one was in at the time. A neighbour raised the alarm after smelling smoke.

The blaze destroyed the living room and caused extensive smoke damage to the rest of the property.