A two storey house in Welcome Bay is described as ‘significantly damaged' after being on fire on Sunday afternoon.

Tauranga Fire Service senior station officer Len Sabin says around 70 per cent of the house has been affected by the blaze.

'It had operational crews working on it until about 9.30pm last night and the power has been disconnected to the house.

'The initial crew did a good job of cooling the house and protecting the exposure, which was the house on one side of it.”

Len says there is no damage to surrounding properties, however for the house affected, he guesses the significant structural damage may lead to demolition.

The fire, which was located in Flinders Place, sent large billows of black smoke into the air.

A local resident says the fire appeared to start on the balcony of the Welcome Bay home.

Len says no occupants of the home were injured.

A Welcome Bay resident captured the black smoke. Photo: Bruce Barnard.