A 10-year-old Muslim boy has been investigated by police after mistakenly writing he lived in a "terrorist house" during an English lesson in Lancashire, in England's north-west.

The boy, 10, had meant to write that he lived in a "terraced house", the BBC reported.

The boy's family told the BBC they were left shocked by the incident in December and had asked the school and police to apologise.

Lancashire Police said the boy was visited by police, but not by officers from Prevent, a UK Government organisation tasked with preventing terrorism.

"This was reported to the police but was dealt with by a joint visit by a PC from the division and social services, not by anyone from Prevent," a statement said.

"There were not thought to be any areas for concern and no further action was required by any agency."

Under Britain's 2015 Counter Terrorism and Security Act, teachers face penalties for failing to report suspected extremist behaviour to police.

The Muslim Council of Britain's assistant secretary-general, Miqdaad Versi, said he was aware of a number of similar cases.

"There are huge concerns that individuals going about their daily life are being seen through the lens of security and are being seen as potential terrorists rather than students," he told the BBC.

"This is a natural consequence of the extension of the 'Prevent Duty' to schools."