A drunken yob who had repeatedly threatened to set fire to a 1m-pound prized thatched cottage laughed as he torched it while the elderly owners watched TV inside.

Jobless Matthew Watson, 21, screamed "this will be on the news" as he lit up Tony and Pauline Smith's Grade Two listed property.

York Crown Court heard Watson's threat became reality on April 11 last year as he staggered through leafy Knaresborough, North Yorks., with pal Peter Harley.

Shouting "I am going to set this f***er on fire" he held a cigarette lighter to the cottage roof and watched as it burned.

The couple were completely unaware of the danger they were in until the electricity tripped. Tony went outside to investigate and was shocked to see the thatched roof on fire.

They escaped without injury but lost their home and possessions, were forced to sell the wrecked property at auction and say their lives have been "destroyed".

Watson was given an indefinite jail term on Monday and must serve a minimum of three-and-a-half years before he is considered for parole.