A man has been bailed on suspicion of arson after a house fire next to a nursery that led to an elderly woman being taken to hospital.

The fire, which broke out in Martin Way, Morden, led to the nearby Busy Bees nursery being evacuated and caused windows to shatter in the heat.

From Thursday: UPDATED: Woman in her 80s in hospital and man arrested for arson after house fire in Martin Way, Morden

The London Fire Brigade and Metropolitan Police were called to the road shortly before 8am. A woman in her 80s was taken to hospital, where it is believed she was treated for shock.

Police arrested one man on suspicion of arson, who was treated in hospital for smoke inhalation. A 48-year-old man has been bailed until September 5 pending further enquiries.

Speaking on Thursday morning, Busy Bees manager Louise Umpelby said she saw the fire and started banging on the woman's door to alert her to the danger. 

Ms Umpelby said: "I knocked on her door, and had been banging on her door for a while, when the window popped and she ran out in her dressing gown.

“The downstairs window cracked and shattered due to the heat. The fire was so bad and her house was directly next door, so we needed to get her out of there and wake her up quickly."

The brigade was called at 7.58am and the fire was under control by 8.45am.

Fire crews from New Malden, Sutton and Wandsworth fire stations attended the scene. The cause of the fire is under investigation.