GANGS of youths are terrorising residents and indulging in a rampage of destruction on a housing estate.

The youths, some of whom are as young as seven, are smashing windows and ripping out the fixtures and fittings from derelict houses in order to build fires.

The chaos has been caused by the start of a demolition scheme on the Woodhouse Close Estate, in Bishop Auckland.

The project, which is being overseen by Wear Valley District Council, started on Saturday.

People living nearby say they have subsequently been plagued by gangs of youths.

One mother-of-two, from Lusby Crescent, who did not wish to be named, said she and her neighbour had stayed up all night because they feared for the safety of their homes.

She said: "They are throwing bricks and bottles at each other and sometimes it is coming into my garden. I cannot even let my children play out because I am so worried."

The residents are planning to hold an emergency meeting and threatening to withhold their rent if immediate action is not taken by the council to rectify the problem.

Michael Kelleher, head of neighbourhood operations at Wear Valley District Council, said the high level of disruption had taken the council, police and fire service by surprise.

He said: "We are now taking advice from demolition experts to see what can be done. Nobody could have foreseen the level of disturbance that has occurred."

One solution would be to secure all the houses and take one house down a day rather than demolish all the house included in the demolition scheme, he said.

Durham and Darlington Fire and Rescue confirmed that firefighters had visited the estate an average three times a night to deal with nuisance fires. It is also believed that site security has been withdrawn because of safety fears.

A spokesman for the fire service said firefighters would be visiting schools in the area to point out the dangers of playing in derelict houses and setting fires.

He said: "These are nuisance fires and we could be somewhere else saving lives."

Bishop Auckland police have confirmed that they will also be trying to rid the estate of the problem.

Inspector George Osbourne said: "We are talking to the council to see what we can do to make life better for the residents."