FOUR people have been found dead in a house following a suspected firearms incident.

Police were alerted shortly before 11.45pm last night by a caller reporting people had been shot inside a semi-detached house in Greenside Avenue, Horden, County Durham.

Firearms officers were quickly deployed to the scene and when they entered the property they discovered four bodies in different rooms in the downstairs of the house.

All the victims were adults. Police said one female victim was in her 20s and the other two females were in their 40s.

One male at the house was initially arrested on suspicion of murder and since released without charge.

A fifth person, a 19-year-old woman thought to be related to one of the victims, was treated for shotgun injuries at North Tees Hospital in Stockton. She has now been discharged from hospital with minor injuries.

Shotgun pellets were left in her wrist and shoulder during the incident. It is understood she managed to escape through an upstairs window.

She was located by police at another house in the street shortly after officers arrived in Greenside Avenue.

The man who died has been named locally as taxi driver Michael Atherton Snr.

One of the females who died has been named locally as Susan McGoldrick.

Mr Atherton, 42, had a licence to keep three shotguns and three 'section one' weapons.

It is believed the shootings were carried out with a long barrelled weapon.

It has emerged that police attended the address in 2008 after family members reported that Mr Atherton had been threatening to self-harm.

Police would not confirm whether Mr Atherton was threatening to use the firearm, but say reviews were undertaken in relation to his firearms licence after this incident.

Durham Police said they will make a voluntary referral to the IPCC because of previous contact between the family and police before.

Police said all the shots were fired within "literally seconds".

The firearm unit was at the scene within 20 minutes of being dispatched.

Assistant Chief Superintendent Ivan Wood said no disturbance had been reported before the incident.

After the shots were fired, family members made "hysterical" calls to the police.

Police believe the family members had been out at a pub or for a meal before the incident took place before returning to the house.

Deputy Superintendent Paul Goundry, who is leading the investigation, said he did not believe the family were in the house for long before the shots were fired.

Assistant Chief Constable Michael Banks said: "At this moment in time, because the people who have died have not been formally identified and their are family members who have not been informed, we are not releasing those names."

Police believe all four are related or known to each other and at this stage they are not looking for anyone else in connection with the deaths. A shotgun was found lying next to the man's body.

The area has been cordoned off since shortly after midnight and police say the house will be subjected to a forensic examination throughout today and probably into tomorrow.

It is expected to be some time before police are able to formally identify those who have died.

One neighbour who lives on Greenside Avenue, Horden, County Durham, said this morning: "I was walking home from work at quarter past 12 last night and the first thing I saw was a guy running around covered in blood.

"He was shouting 'someone's been shot in the head'.

"I knew the family quite well. Noone can believe it's happened."

Another neighbour who lives a few doors down on Greenside Avenue said: "We're all in shock.

"I didn't know anything about it until I woke up this morning and saw the corden.

"It's normally a quiet area - I've never known anything like this happen before."

An incident room is being set up at police headquarters in Durham staffed by officers from the force's major crime team led by the senior investigating officer, Detective Superintendent Paul Goundry.

Anyone with information is being asked to contact Durham Constabulary on 101 or to ring Crimestoppers on 0800-555-111.

*Did you know the victims? Call The Northern Echo newsdesk on 01325-505054.