A quick-thinking workman alerted people living in a block of four maisonettes when fire threatened to engulf their homes.
Cabinet maker Christopher Riley, who was working at a nearby property, frantically hammered on the doors of the homes in the block in Tavistock Drive, Evington, Leicester.
Smoke and flames were seen pouring from the upstairs window of one of the homes in the block at about 12.45pm on Thursday.
Mr Riley, 29, of Birstall, who was working in adjoining Buckfast Close, said: "I was having my lunch outside when I saw three young lads, aged about 15 or 16, walking away from the property talking loudly on the phone requesting the fire brigade.
"I asked if there was anybody still in there. They were in a state of shock and arguing among themselves.
"I looked across and saw thick smoke coming from the top window. I started banging on the doors of adjoining properties quite aggressively to make sure they could hear me.
"I was worried the fire might spread. The smoke was black and getting thicker and after a couple of minutes I saw flames.
"The place seemed to be gone in 30 seconds to a minute. The fire brigade were here within five minutes, it was incredible how quickly they got here and got the fire under control."
One of the rescued neighbours, who asked not to be named, said: "I was alerted by a loud knock on my door by the chap working across the road.
"When I got outside I could see smoke and flames shooting out of the window. It was very frightening and scary and there were lots of neighbours out in the street. I thought the whole lot was going to go. I could hear glass breaking and other popping sounds.
"The fire brigade put it out very quickly. They were wonderful and I think they managed to stop it spreading across the roof space. Everybody in the street pulled together, with neighbours offering us drinks or to go into their homes.
"It's a mixed community and everybody gets on well. It's a good neighbourhood. I've lived here for 25 years. It could have been far worse if it had happened at night and it's not something I'm going to forget.
"I want to give the highest praise to the fire brigade, police and ambulance, they were absolutely brilliant, very organised and professional."
Another neighbour, who also asked not to be named, said: "I was getting ready to go out for lunch when I saw smoke coming out of a back window and heard cracking.
"There was a loud knock at my door and I rang 999 before I got out. I thought the fire was going to spread to my flat, but the firemen did a good job."
Four fire crews from Leicester's eastern and western fire stations, together with the aerial ladder platform from the city's central fire station, dealt with the incident.
Fire investigation officers and the East Midlands Regional Fire Investigation Dog Unit attended the scene.
A Leicestershire Police spokeswoman said: "We are continuing enquiries into the incident. Three people have been arrested and released on bail."
