UPDATED 3.42PM: Two people, believed to be an elderly couple, are now known to have died in a house fire at Tolaga Bay overnight.

Firefighters from Tolaga Bay and Tokamaru Bay were called to the Uawa Parade house 3.14am.

A fatal house fire in Tolaga Bay is under investigation.

The property was well alight on arrival, says NZ Fire Service central communications shift manager Murray Dunbar.

The first body was found about 9.20am, the second just over two hours later at about 11.30am.

Tolaga Bay is on SH35 north east of Gisborne.

Dolly Mitchell, from the Uama Foodmarket, says the elderly couple had completely renovated the house.

'It's just along the river, surrounded by a lot of trees,” says Dolly.

'It's Beautiful. Its and old bungalow done up, lead light windows in the doors and windows, it was amazing, the floors all that old rimu and kauri, a gorgeous home.”

They were both old and he wasn't too well. She was an accomplished artist says Dolly.

'A fantastic artist, she's another Goldie. Her artwork, she's beautiful she can do portraits, scenery, still life, a beautiful artist. She did some portraits of a couple of people who were working on the place when they were staying here. Fantastic.”

Earlier:

One person is dead following a house fire at Tolaga Bay earlier today.

Firefighters from Tolaga Bay and Tokamaru Bay were called to the Uawa Parade house 3.14am.

The property was well alight on arrival, says NZ Fire Service central communications shift manager Murray Dunbar.

'Later in the morning one body was discovered inside the premises. The property was totally destroyed, fire investigators are on the scene at the moment,” says Murray.

'We haven't heard there was anybody else involved at this stage.”

Tolaga Bay is on SH35 north east of Gisborne.

Stuff is reporting an elderly couple was a staying at house.