Fifty firefighters fought a huge blaze on Bexhill seafront which gutted a large house used by squatters early today.
Flames were seen inside the building shortly after 5am and within half an hour flames were leaping into the sky.
Firefighters from all over East Sussex were sent to the scene after reports people could be trapped inside.
It was one of the biggest blazes the town has seen.
Everyone inside the building in Bedford Avenue was accounted for by 8am but searches were still being made this morning.
At one stage it was thought nearby properties might have to be evacuated.
Fire crews hosed down the walls of a block of flats a few feet away.
The blaze started on the second floor and quickly spread to the floor above and the roof.
The property was a three-storey house built at the end of 19th Century.
It had been bought by a developer who was drawing up plans to knock it down and build luxury flats.
The house was a favourite haunt of squatters.
Gary Gowing, 80, who lives next door, said: "It was pretty spectacular. We were woken at around 5.30am by the sound of the roof caving in.
"When I looked outside the whole building was alight."
He added: "The house has been in a derelict state for around 18 months and squatters had moved in, but they never did anyone any harm."
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