A LOADED handgun and ammunition are being examined by forensic experts after they were recovered from a house in Derby.

Police acting on a tip-off raided the property in Sunny Hill on Wednesday night and spent yesterday searching the house and its garden.

The gun, containing one bullet, was discovered in an outbuilding while suspected cocaine, allegedly worth £300, and what police believe to be cannabis was found inside the house.

Last night four people arrested at the scene – a 41-year-old woman, two 18-year-old men and a 17-year-old youth – were being questioned by officers.

Some people living near the house, in Coleridge Street, said they were shocked.

Marie Lambert, 30, said: "I've lived here 12 years and I've never heard of anything like this."

Rob Ellis, 41, said he had seen police digging in the garden.

He said: "We try and keep ourselves to ourselves, so we had no idea. You never know what's happening in your 'own backyard'."

One 30-year-old woman, who did not want to be named, said she was not surprised by the find – and that she was trying to move away from the area as soon as possible.

The search of the house was conducted as part of Operation Redshank, set up in response to a series of firearms incidents between December 2007 and December 2008.

Detective Inspector Rob Massey said officers had not expected to find the weapon during the raid.

He said: "Operation Redshank was set up to investigate gun and gang-related criminality and linked in with that is the availability of drugs.

"The gun did have a live bullet in it but the main amount of ammunition was found inside the house.

"Even one bullet can have a devastating impact.

"The firearm was the most significant find – we had not expected to find a gun."

The raid, which happened at about 4.45pm, involved officers from the task force and also a dog trained to locate firearms.

Officers stood guard outside the property until the early hours of yesterday morning when the search was resumed.

Throughout the week police carried out targeted patrols in the Allenton and Sinfin areas as part of Operation Redshank.