Rotorua Lakes Council is still warning people to stay clear of the mud pool that has opened up on Meade St in Whakarewarewa.
There has been more ground collapse since yesterday and the mud pool is now bigger and has reached to just under foundations of a garage on the property, according to a written statement from the council.
There was also steam venting from the bank moving towards the house and occupants of the house had moved out.
The statement said similar events had happened in the past but had just been steam vents which eventually stopped, making the mud pool formation different.