The owner has vacated the home - leaving it in a state of disrepair - and is believed to be living on the South Coast.

Police, meanwhile are unable to conduct an investigation into the fire – which they are treating as suspicious – before a structural engineer signs off on the house being safe to enter.

The home on Neumayer Street, which was unoccupied and had no utilities connected, went up in flames after 8pm on Tuesday night.

Emergency Services personnel called out to attend to the blaze were aware the home had contained Mr Fluffy loose asbestos under new asbestos safety protocols and wore adequate protective clothing and equipment to bring it under control, according to Mr McCabe.

He noted most of the fire damage had occurred in the roof, where the asbestos had previously been cleaned.

"The real quantity of material is in the walls and the subfloors - neither of which seem to have been damaged by the fire."

Mr McCabe said he intended placing the home under a prohibition order once police finished their investigation. But a fence had been erected on Tuesday evening and the home was no longer accessible to the public.

Worksafe was now seeking to make contact with the owner in order to discuss next steps.

Mr McCabe noted that there were legal provisions which permitted a demolition to be ordered on public health grounds but that would be considered a final resort. As a temporary measure, the house will be encased in a weatherproof tarpaulin by qualified asbestos contractors until the owner is located.

The ACT Asbestos Response Taskforce confirmed that the home was still privately owned and had not been bought back by the Government under the terms of its buyback scheme.

The homeowner had, however, returned his election form to indicate he wanted to participate in the buyback.

It had not progressed beyond that point and the home is not believed to have been valued.

"The timing of the valuations for the buyback is within the hands of the owner," Taskforce head Andrew Kefford said.

Mr Kefford said the home's future and whether it would need to be demolished was an issue between the homeowner and WorkSafe, although the taskforce would assist where it could.

Mr McCabe said that air monitoring around the home had been put in place last night immediately after the fire and a qualified asbestos contractor had been dispatched to the site at the same time as emergency services.

A qualified asbestos contractor had returned to the site on Wednesday morning and confirmed that air monitoring had come back within normal limits.

"The likelihood of fibres being released due to the fire is minimal" Mr McCabe said

"Post the fire, risk of exposure still highly unlikely. The risk to health would be negligible."

Criminal investigations unit Acting Superintendent Steve Hogarth said it appeared the fire started inside the home, however, police would continue investigating the fire after Worksafe deemed the house structurally safe.

"All fires are treated as suspicious until a reason for the fire can be determined either through ACT fire investigations or through the efforts of forensics and investigators," he said.

"In this case we know that there were no utilities connected to the premises, including power and gas, and we also know that the premises was unoccupied at the time," he said.

Meanwhile, the taskforce letter-dropped 43 people in the immediate vicinity on Wednesday and door-knocked five close neighbours to assure them appropriate safety measures regarding the house were being put in place.

Neighbours said they did not feel unsafe living in the vicinity of a Mr Fluffy house, but described the home as "an eyesore" and wanted it to be dealt with as soon as possible.