Emergency services were called to reports of a fire at a house in St Richards Road, Westergate, around 6.20am on Thursday (April 22),
No one was present inside the address, and no one was injured, Sussex Police confirmed.
A spokesperson added: "The fire was found to have been started deliberately.
"Police attended and after carrying out a number of fast-time enquiries, arrested a man on suspicion of arson with intent to endanger life and possession of a knife blade / sharp pointed article in a public place.
"He has been released on conditional bail while enquiries continue."
Anyone who saw what happened, witnessed any suspicious behaviour in the area or who has any other information is asked to contact police online or by calling 101 quoting serial 193 of 22/04.
Alternatively, information can be passed to police anonymously via the independent charity Crimestoppers online or by calling 0800 555 111.