Four boys and a girl aged between 13 and 15, and all from North Devon, were arrested on suspicion of arson with intent to endanger life.
All five have since been released on police bail.
A man in his 30s, from Bideford, was previously arrested on suspicion of arson with intent to endanger life and released on police bail, the police added.
Det Insp Chris Lithgow, from the Major Crime Investigation Team, said he wanted “to thank the public for their patience, understanding and support during this investigation”.
“We’ve been working with other agencies and have been able to reduce the cordon and allow for a significant number of displaced residents to return home.”
“The remainder of those evacuated remain displaced due to structural issues.”
“Our thoughts are with the family of the person whose body has been recovered from the property” he added and he urged the public not to speculate about the incident or the identities of those involved as “it may risk jeopardising an active investigation”.