AN elderly couple feared dead after their cottage in the grounds of Blenheim Palace was destroyed in a fire have been named locally.

David Budden, who grew up in Woodstock, said he remembered Donald Thompson and his wife living at the Fisheries Cottage, having gone to the same school as their son.

The 47-year-old, who now lives in Bicester, said: "I remember in the 70s... I saw them and the many dogs they had over the years, I think he was the game keeper before he retired.

"The 11th Duke of Marlborough [John Spencer-Churchill], would have known them because he would have gone out shooting with him.

"I was at secondary school with their son, who I think was in the year above me.

"This is extremely tragic and I cannot believe it has happened or that it took so long for the fire to be discovered."

It is thought the couple were inside when a fire ravaged their home on Tuesday night, before the smouldering remains were discovered on Wednesday morning.

Mr Budden added: "I really hope the estate will do the right thing by, even just putting a little plaque to remember them and the cottage because it was a part of skyline.

"It makes you wonder whether the smoke alarm was working properly or not.

"This has just brought back all my memories of them when we used to play by their cottage in the grounds – fly our kites, that sort of thing."

It is believed that the cottage, to the north of the lakes in the palace grounds, was one of the last 'grace and favour' cottages given to people who had worked at Winston Churchill's birthplace.

The cottage pre-dates the palace itself, having been built in the 1600s.

Woodstock resident Heidi Nielsen took pictures of the wreckage on Thursday morning which revealed the full extent of the damage.

The 44-year-old, who lives in Hill Rise, said she could still see and smell the smoke when she visited the palace grounds on Thursday.

She added: "I was shocked, I couldn't believe it. It was still smoking on Thursday morning.

"I walked past that cottage everyday with my dog.

"I have seen the elderly lady a couple of times but it was mostly the dog as it was outside and it would always trot over and say hello to mine.

"I think people are just shocked this happened it does not seem real, we are all saddened by this."

The mother-of-three said that she had always seen smoke coming from the chimneys as they 'always had fires going'.

Police have yet to confirm the identity of the couple but say the fire is not being treated as suspicious and are continuing their search investigations.