DRUG dealers are cashing in on the region's lower property prices by buying or renting houses to set up cannabis factories.

About 1,500 cannabis plants with a potential value of £1.5m have been seized in police raids on eight houses across County Durham.

Seven people, six men and one woman, aged between 25 and 46, have been arrested following Operation Applejack, which was carried out by Durham CID last week.

Three men have been remanded in custody by South Durham Magistrates' Court.

A further three men and one woman, aged 45, have been arrested for drug offences and have been bailed pending further inquiries. One of those is a 42-year-old arrested in West Rainton.

The week-long series of raids started last weekend when detectives raided a house in Murphy Crescent, Bishop Auckland, recovering more than 300 cannabis plants. Later the same day, a warrant was executed for a house in Collingwood Street, Coundon, which led to the recovery of more than 400 plants.

The raids carried on in South Durham, with 370 mainly mature plants seized in Haig Street, Ferryhill, and more than 500 taken from High Street, West Cornforth.

A house in Eden Close, Coundon, was also targeted. No cannabis plants were found, but some equipment was discovered.

Last night, people living in West Cornforth, where one raid took place, were stunned. One woman described how she had seen police wearing white overalls carrying bags out of a house in Main Street.

The man leading the inquiry, Detective Inspector Billy Hugill, confirmed the operation aimed to break up a major crime ring.

He also said some of the houses had been bought or rented with the sole purpose of growing cannabis.

He said: "The plants we have recovered are at various stages of growth but the potential yield from this could be as high as £1.5m.

"This operation proves that those who become involved in the large-scale cultivation and supply of any controlled drug can expect to find the police taking swift action."