Homes in Elnor lane, Whaley Bridge, Derbyshire, had to be evacuated following reports of the explosion at about 22:30 BST on Wednesday.
An army Explosive Ordnance Disposal team attended the address early on Thursday morning. No-one has been reported injured.
The man is being held on suspicion of causing an explosion to endanger life.
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High Peak councillor Andrew Fox, who lives nearby, said: "We heard a large explosion around 10:30pm, we rang the police and reported our concerns."
Residents in Elnor Lane were asked to leave their homes during the investigation but have since returned.
One house remains cordoned off by police. Police and fire investigators are trying to establish the cause of the explosion.
A man has been arrested following a "large explosion" at a house in a village.