A TEENAGER who was rescued from her blazing home after a suspected arson attack was in hospital in a serious condition last night.

The 16-year-old was one of three children pulled out of the burning house by firefighters in the early hours of yesterday. Police launched an immediate investigation and are treating the fire as suspected arson.

Neighbours raised the alarm after seeing flames at the terraced house in Frederick Street South, Meadowfield, near Durham City, at about 1.20am.

The teenager was looking after her younger brother and sister, thought to be aged six and seven. Firefighters rescued the girl from a first floor window, and she was taken by ambulance to the University Hospital of North Durham with chest problems after breathing in smoke.

The younger children, who were rescued from the ground floor, suffered only minor injuries.

Their mother, Val Atess, was down the street with friends celebrating the New Year at the time of the fire. She tried to get into the house but was beaten back by the flames and had to be treated in hospital for smoke inhalation.

She declined to talk to The Northern Echo yesterday, saying only that her elder daughter was "in a bad way", but was expected to pull through.

Three fire engines from Durham answered the 999 call. They also had to put out a fire in a car next to the house, believed to belong to the Atess family.

Neighbour Geoff Hughes, 59, and his son, Tony, 35, were among the first on the scene. Tony said: "I came around the front of the house. It was then I realised that the kids were still inside and I just thought, Jesus, this could be really awful.

"The fire brigade were there straight away and pulled the kids out. They were brilliant. Smoke was billowing out of the house. Any longer in there and those kids would have been dead."

Geoff said: "There is no doubt it was arson in my mind. Someone has gone in and firebombed that house and car. What scares us is wondering what whoever did this might do next."

A spokeswoman for County Durham Fire and Rescue said: "This was a severe fire at the rear of the property. It is being treated as suspicious."

A police spokesman said: "Police officers and members of the fire and rescue service are working together to establish the cause of the fire."

Anyone with any information is asked to contact police on 0191-386 4222.