A 20-year-old man has been charged by police over an alleged drag race that killed a teenager in the Perth suburb of Thornlie earlier this week.

A 19-year-old man died when his Holden Commodore rolled down an embankment, smashed through a brick wall and ploughed into the back of a house before bursting into flames just before midnight on Thursday.

Part of the back wall of the home collapsed and a crane was used to remove the wreck from the backyard.

Major Crash investigators believe the men, who knew each other, were racing at high speed along Spencer Road when the 19-year-old lost control of his car.

He did not have a licence.

Police today charged a 20-year-old Bentley man with dangerous driving occasioning death, driving without a licence and driving an unlicensed vehicle.

He has been released on bail and is due to appear in the Perth Magistrates Court on 4 July, 2014.