A Milton woman returned home from walking her dog yesterday afternoon to find her property alight and fire crews battling to control the blaze.
The Milton Volunteer Fire Brigade was called to the Burns St house about 2.30pm.
Deputy fire chief Robbie Philip said the front of the property was ablaze.
Two crews with breathing apparatus entered the house to try to restrict the fire to the main living area.
It was too early to say what caused the fire.
A fire safety investigator was due to make an initial inspection late yesterday.
Mr Philip said a young couple rented the house.
The man was at work and the woman, who had been at home, had left to walk their dog.
She returned to find the house alight.
The woman declined to comment when approached by the Otago Daily Times at the scene.
Fire crews restricted the fire to the living area, which was extensively damaged.
Other parts of the two-bedroom house were damaged by smoke and water but Mr Philip believed it would not need to be demolished.
A Balclutha Volunteer Fire Brigade appliance was also called up to help.