ARSON cannot be ruled out as the possible cause of a huge blaze which destroyed £2.1 million Newland House.

The owner of the 10-bedroom mansion, millionaire banker Richard Pease was returning home on Monday evening when the fire broke out.

Newland House, believed to be the oldest property in the picturesque village, was gutted by the fire leaving only a smouldering shell by the morning.

Around 50 firefighters from Coleford, Lydney, Cinderford, Cheltenham, Stroud and Monmouth fire stations tackled the blaze.

Crews were initially hampered by poor mains pressure in Newland until a water carrier was brought in. Water also had to be pumped from a pond.

One villager, who did not want to be named, said: "There has been some bad blood in the village and this may have been the result of a vendetta."

Eyewitness Cat McMahon described the sadness at seeing the village landmark destroyed.

"My main concern was for neighbours Bea and John Erskin whose Old Bell's Grammar School home, is next door.

"They had been told to leave their home and take their horses to safety. They were distraught.

"I tried to comfort them as the fire increased in intensity and the flames leapt from floor to floor.

"And then the wind began to change direction. It swirled round towards the church tower and we all thought that it might go up in flames.

"I felt so sorry for Richard Pease and his family because all their lovely possessions were ruined.

"They had been doing up the mansion after buying it last year.