Up to 50 homes have been destroyed in the big fire in the Mackenzie Basin

Fire and Emergency New Zealand has confirmed between 40 to 50 structures are uninhabitable as a result of the blaze which has ripped through the Lake Ohau alpine village.

Fire commander Steve Jones says winds continue to lash the fire, which has now moved south of Lake Ohau Village and been contained in a basin between the lake and Quailridge Road.

He says the fire has reduced overnight despite a few flares up from the heavy winds.

With 14 crews battling the blaze Jones expects the blaze will be mostly under control by this afternoon.