A hot air balloon crashed onto rooftops in a neighbourhood in Brazil, causing a power outage in the area.

Onlookers watched as the red-and-yellow aerostat floated dangerously over the busy streets of Vila Mariana in Sao Paulo before colliding with several house roofs.

Footage shows the balloon's basket swaying just above traffic lights and power lines as it drifted through the south zone community on October 5.

Bystanders on bicycles and pavements looked on anxiously as the balloon passed between high-rise buildings and graffiti-covered walls.

Moments later, the aircraft came down onto the roofs of three houses along Rua Coronel Lisboa.

The impact sparked a small fire and led to a power outage in a nearby block of flats. No injuries were reported.