A tearful neighbour told the Lynn News how she went into the house next door and tried to resuscitate the man.

Norfolk Police's Major Investigation Team launched a murder inquiry following the incident, which happened in a privately-owned semi-detached house at 2 Princes Street, Swaffham, at 9.20pm on Wednesday.

Yesterday, a man arrested on suspicion of murder was being held in custody at a Norfolk police station for questioning, while a forensic team carried out a detailed search of the house for evidence.

The front of the house, where a black Mercedes C200 Compressor with personalised registration X2 CRR, and a light bronze Nissan Micra, registration X3 CRR, were parked, was sealed off with crime-scene tape. A police officer kept guard outside.

Alison Pearman, of 1 Princes Street, said she called the police after hearing "a lot of noise, shouting and carrying on" coming from the house next door, then went to see what was happening.

She described going out to investigate and meeting a man leaning on her fence "just looking very blank".

She said: "I went into the (neighbour's) house and two people were on the floor. I tried to resuscitate my neighbour but he was already dead."

Natalie Stevenson, of 14 Montagu Close, Swaffham, who had also been stabbed, was taken by ambulance to Lynn's Queen Elizabeth Hospital with life-threatening injuries to her chest.

She underwent surgery to stabilise her condition before being transferred to the Norfolk and Norwich University Hospital, where she will be having specialist cardiothoracic surgery. Yesterday afternoon, her condition was described as "comfortable".

Mrs Pearman said the stabbed woman was a friend of her neighbour and had been visiting him at the time.

Police have yet to reveal the identity of the dead man, whose first name was Clive. He was in his mid-60s and believed to be divorced and a retired garage owner.

Recalling the scene she came across, Mrs Pearman said: "I still can't really take it in. It's like something you see in a film – you don't expect to have it on your own back doorstep.

"When it's someone you care about, it makes it worse. I can't believe I won't see him again... It's very sad and a great loss. I feel for his family."

She added: "He was a lovely man and has been a very kind neighbour and friend to me and my son, Sean. We never had any worries or problems with him. We always kept in touch with each other and were there to talk to."

She said the neighbour had been on his own for about two-and-a-half years.

She thought he had at least two sons and a daughter, living in Norwich, and grandchildren.

He also kept two parrots, Scruffy and Coco, and was known locally because Coco occasionally escaped and would be found in neighbouring gardens.

"They are beautiful parrots and are going to miss Clive terribly because nobody else can really handle them," she said.

Clive had been letting out a room to a lodger, believed to be a Latvian woman, for about a year and yesterday she turned up outside the house with a small dog and a male friend, who speaks Polish.

The lodger spoke to police guarding the house and Mrs Pearman for a while, before leaving the scene in tears.

Geraldine Foran, of Lynn Road, Swaffham, called at 3 Princes Street with her husband, Don, yesterday to visit her parents and was stunned to hear what had happened next door.

She said: "It's hit us out of the blue. I have lived here for 43 years and have never known of anything like this happening – it's totally out of character for this area.

"Clive was a nice bloke and I very often had a natter with him. He was a good neighbour to my parents and never any bother."

Mr Foran said Clive, who was liked and well-known, had a broken shoulder so he would have found it difficult to fight anyone off.

Police say they are not looking for another person in relation to the incident.