A house in Lincoln which caught fire on Tuesday was being occupied by students, without proper planning permission.
Firefighters were called to the house on West Parade, in the early hours of Tuesday.
The landlord had twice been refused planning permission by council officials for a row of six houses to be converted into shared student lets.
More than a dozen students fled the flames which were started by candles which were left burning unattended.
Make homeless
Six houses were previously the subject of a failed application to convert them into student housing.
Last week, an appeal to overturn the previous decision was turned down by Lincoln City Council.
The appeal followed lengthy consultation and a public hearing which lasted a month.
Pete Harness, from Lincoln City Council said: "We don't intend to make anyone homeless and we're working closely with the university of Lincoln to ensure that people are not put out onto the streets.
"But, we will not allow the house to be occupied in the way it currently is."
Many residents complained that too many houses were being converted into student lets which they claimed was having a detrimental effect on the area.
The appeal which went before a planning inspector upheld the council's earlier decision in 2003 to block the plans.
One student suffered injuries to his foot while trying to put out the fire.