A LANDLORD is facing a substantial repair bill after arsonists set one of his properties alight.

The terrace house in Sydney Street, Stockton, was severely damaged by smoke and heat after flames swept through the upstairs in the early hours yesterday.

Police are investigating the blaze and initial inquiries have led them to believe the fire was deliberate.

Naseer Ahmed said he bought the house in March, and two others in the street, with the aim of renting them out to students.

He said English students from Libya had been leasing the property on a short-term basis, but the house has been vacant recently.

"Fortunately, there was nobody in the house at the time," said Mr Ahmed.

"The fire brigade said somebody set the fire deliberately in the big front bedroom and it just spread from there.

"The downstairs seems okay, but there is a lot of smoke damage upstairs, and the floorboards and things will need replacing. We did have some furniture in there, too, but we do not know how much it is going to cost yet."

Three fire appliances were called to the address at about 1.30am yesterday.

Firefighters were on the scene for an hour and they reported 90 per cent smoke damage to the property.

Detective Sergeant Noel Young, of Cleveland Police's arson taskforce, appealed for anyone with information to contact officers.

He said: "It's being investigated as an arson. We have taken a statement from Mr Ahmed and are about to start speaking to neighbours."

Mr Ahmed said he could not think of any reason why someone would deliberately set the property on fire and said he had had no problems with people breaking into the property before.

"We think they might have climbed over the wall at the back and through a window and then opened a door. There is no sign of a break-in," he said.

Anyone with information is asked to call the arson taskforce on (01642) 326326.