Stan Batty (49), who runs Bulldog Engineering from Prospect Garage, has been left devastated by the blaze as he does not have insurance to cover the cost of the damage which is expected to run into thousands of pounds.

Mr Batty said if highly explosive gas canisters in his premises had ignited it would have been like a 100lb bomb going off.

It is believed the blaze, which gutted the garage in Arundel Place, started from a leaking propane gas heater at around 8.40pm.

Mr Batty had left it on to warm up the building before he began some welding work.

The force of the explosion knocked him off his ladder and blew his woolly hat off.

Fire crews from Whitby, Robin Hood's Bay and Lythe arrived at the scene in minutes as well as police, who evacuated residents living in nearby houses.

All but one couple were allowed to return to their homes after around two hours.

It took firefighters an hour to put out the blaze although they remained at the premises until 9.30am the next day. Adjoining properties suffered smoke damage.

Mr Batty, who has run the business for two years, said he tried to put out the fire using extinguishers and a hose pipe.

"What the firemen told me was that gradually the propane must have escaped and filled up in the roof. I was doing some welding then it went bang and it went bang in a big way.

"We tried to put the fire out but the hydrant wasn't working so a pump engine had to be sent for.

"I'm sure it took minutes but when it's your business on fire it feels like a lifetime. The fire brigade were magic though, they did a great job. They saved my house, which is next door."

Mr Batty said youngsters whose parents are customers at the garage have helped him clear up the aftermath and have spent hours helping him.

Julie Curry (47) of South End Gardens, which backs onto the garage, could not return to the house she shares with her partner and dog until the next day.

She said: "We looked out of the window and the air was full of thick smoke. There were already leaping flames licking the underside of a skylight in the garage, which were coming through the roof within minutes.

Crew manager Ian Clarkson said there was no delay in tackling the fire and a water hydrant was pinpointed within minutes via a computer mapping system.

"Rather than mess with the hydrant we placed into the next nearest one.

"The one we ended up using was closer."

To see a video of the fire, click here