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A man accused of a loyalist feud-related petrol bombing in County Down is to be released from custody.

Mr Justice Humphreys granted bail to Stephen McKeag, after hearing from a councillor that tensions in Newtownards have begun to "quieten down".

Mr McKeag, 30, of Upper Movilla Street in Newtownards, faces charges related to an attack on a house at Moyne Gardens in the town.

He denies any involvement in the incident.

On 26 March the front and rear windows of a property were smashed and a petrol bomb was thrown into the house.

Two people were inside at the time of the attack.

One of the occupants picked up the lit device and placed it in a sink, sustaining a hand burn in the process.

Another petrol bomb launched at the house was extinguished using an oven glove.

A woman who was upstairs said she recognised Mr McKeag as one of six men involved in the attack.

The accused denies charges of arson endangering life with intent and attempted intimidation, as well as making and throwing a petrol bomb.

He claims that he was elsewhere on the night of the attack.

'Ongoing feud'

Opposing bail, a prosecution barrister argued that the petrol bombing is believed to be part of a series of incidents connected to an ongoing feud between rival UDA factions in the north Down area.

"Reprisals are considered a real possibility," he added.

Defence counsel Sean Doherty insisted the case against Mr McKeag is completely based on an account from one witness.

"It's a malicious, false statement motivated by enmity towards the applicant," he told the court.

Mr Justice Humphries was also informed that police have not yet checked with four people named as part of Mr McKeag's potential alibi.

'Started to quieten down'

During the hearing independent Newtownards councillor Steven Irvine gave evidence on the accused's behalf, and to support defence submissions that there has been no recent feud-related activity.

He told the court trouble flared earlier this year after a gang moved into an area of the town from Carrickfergus.

"Things have started to quieten down," Mr Irvine said.

The councillor described Mr McKeag as someone heavily involved in community and charity fundraising activities.

"As a person, he's 100% - that's why I'm putting my reputation on the line," he added.

Granting bail, the judge confirmed his decision was mainly based on Councillor Irvine's testimony.

"I have been impressed by his evidence, both on the issue of the so-called feud… and in relation to the character of the applicant," he said.

Mr McKeag was ordered to live under curfew at an address in Belfast and banned from entering Newtownards.

A £10,000 cash security must also be lodged as part of the terms of his release.