Police are investigating an overnight house fire that destroyed a weatherboard home in Warrena Lane, Coonamble, in suspicious circumstances in the early hours of Tuesday morning.

It's the second time this year that the house has been burned, the last time being January.

Emergency services were called to the home shortly before midnight on Monday 30 September.

Over a dozen fire fighters and four trucks were on the scene - two from the Rural Fire Service and two from Fire and Rescue NSW.

Residents of neighbouring properties watched nervously as firefighters fought to stop the fire from spreading.

Warrena Lane resident Trish Selwyn was watching television when she heard two loud noises from outside.

Firefighters tackle the house fire in the lane. PHOTO: The Coonamble Times/ River McCrossen

"I just thought it was a car door or something banging," Trish said.

However, she soon became concerned for her own home when she came outside to see the house next door ablaze.

"Embers of the fire were coming down here. They were laying onto the ground before they even went out," she said.

"I was thinking 'sh*!, my house. I've got gas bottles at the back of the house for the heater. My car's at the back'."

Fire fighters brought the fire under control by 12:20am.

Police said the property was vacant at the time of the fire. No injuries were reported.

“Neighbouring properties were evacuated as a precaution," a police spokesperson said.

"A crime scene has been established, with investigations into the circumstances surrounding the incident ongoing."