Police have not ruled out foul play after a man's body was found at an abandoned Hamilton house following a blaze.

The fire began at around 4 a.m. yesterday at the Washington Street North cottage often used by prostitutes and drug addicts.

One neighbour, who lives at one of the three lime green cottages on the Elliott Street junction, said she was awoken by a crackling sound.

"Then we heard a big boom and we thought it was another transformer blowing up. The lights were flickering in the house.

"Then we heard more crackling sounds and saw smoke coming out."

She went out to look and called the fire brigade.

The woman, who did not wish to give her name, said the burned house had been empty after a family moved out last year and was often used by drug users and prostitutes at night.

"Everything goes on there, I don't know why they don't just knock it down."

A spokesperson for the Fire Service said five vehicles rushed to the house which was "well ablaze".

She added: "Two firefighters entered the building in breathing apparatus to extinguish the fire and perform a preliminary search.

"It took firefighters approximately 20 minutes to bring the blaze under control, however during their search a body was discovered in one of the rooms of the building."

A Police spokesman said: "The individual was pronounced dead at 7.25 a.m. today by an on-call physician at the scene.

"Foul play has not been ruled out. An active investigation into this incident is underway."

No further information will be released until the next of kin has been notified and an overseas forensic pathologist has been summoned to help the investigation.

A homeless man, who squats next to the blaze house, said fires were common at the two derelict houses in the three-house set.

"There were some people there at 4 o'clock in the morning, I smelled smoke, checked around but it wasn't the house I'm in."

He said homeless people using the empty homes had often dropped cigarettes.

In July 2006 two people escaped a neighbouring property before a blaze gutted it.

Asked yesterday if he was concerned about illegal activity at derelict homes, Corporation of Hamilton Mayor Sutherland Madeiros said: "We do have concerns about places that are not properly secure that are being lived in.

"It lends itself to all sorts of unhealthy activities."

He said the Corporation would be looking into the matter but its powers were limited.

"This is after-the-fact for some poor person but the fact is that it shouldn't be allowed to be like that.

"There is no ordinance to prevent it but good common sense and good governance means we should ensure it can't happen again."

Police are appealing for any witnesses or anyone with any information to contact Acting Inspector Kevin Christopher on 295-0011.