At least one house has been destroyed and another severely damaged in a fire early this morning.

The properties, situated in Totara Terrace, caught fire just after 3am and Stuff reports that there have been no serious injuries with the occupants escaping the burning buildings.

Fenz southern communications shift manager Simon Lyford told Stuff that those who were inside the Totara Terrace house when it caught fire, escaped out the back of the property, and sought refuge at the neighbouring Wanaka Primary School.

Everyone who was in the house had managed to escape, and everyone was accounted for, Simon told Stuff.

A resident in the area described the fire as ‘horrific to see and incredibly traumatic’.

It was too early to say the exact extent of the damage, or the cause of the fire.

PHOTO: Wanaka App