FIVE people were arrested today as part of a long-running fraud investigation into two scandal-hit property companies.

Two men aged 51 and 36 and three women aged 24, 46 and 51 were arrested on suspicion of conspiracy to defraud and money laundering by Northumbria Polices economic crime unit.

The force is investigating North-East Property Buyers and Newcastle Home Loans.

The two companies buy people's homes and then rent them back to them.

As many as 2,000 tenants in the North-East and Yorkshire are thought to have received letters warning them about the future of their homes.

Some were told that their mortgages have been defaulted on.

Northumbria Police launched a fraud investigation in March on the referral of the Financial Services Authority.

Nine homes and properties in Gateshead and County Durham were searched in March, with tens of thousands of pounds in cash and documents seized.

One of the properties searched in March was believed to be the home of Andrew Oliver Bellwood, 29, a partner in David Oliver Residential, in Darlington.

He was arrested on suspicion of money laundering, and bailed while police continued their investigation.

A spokesman for Northumbria Police said tonight: "Today's arrests were carried out by the force's economic crime unit in Sunderland and Newcastle.

"Two men aged 51 and 36 and three women aged 24, 46, and 51 were arrested on suspicion on conspiracy to defraud and money laundering in connection with the activities of North-East Property Buyers and Newcastle Home Loans, both formerly based in Gateshead."

No further details of those arrested were being released tonight.