The fire started in the balcony and Payne's friend was taken to hospital for suffering second-degree burns to his upper body, reported Aceshowbiz.
According to reports, the blaze started when the singer's friend tried to re-fuel an outside heater on the terrace. Payne, who was in the kitchen at the time, rushed out to help put out the flames and then rode with his friend in an ambulance. The singer is fine, but his friend remains hospitalised.
Payne was back in London after attending the MTV Video Music Awards and later promoting 1D's documentary "One Direction: This Is Us" Stateside with his bandmates.