The couple were in bed when the Mercedes ploughed through the front of their cottage on St Mark's Road, Millfield, Sunderland, in the early this morning.

Joe Poulter, 40, who has lived in the house for eight years, said: "At first I didn't have a clue what it was. I just wanted to make sure the rest of the family were okay.

"Fortunately, the baby was at the other side of the room next to the window. Everybody was fine, we just had a few bumps and bruises."

"The damage to the house is pretty bad, the front door has been demolished.

"It was a bit of a rude awakening to have this car coming through your bedroom wall."

His partner Angela Foss, 38, and their son Jack, six, and baby Liam all escaped without injury.

He added: "It is all a bit annoying, not knowing what has happened. I don't even know if the car has been stolen."

"At the minute, we are staying with my mum and now have to sort out everything with the insurance company. I think the people are out today securing the property next door."

The accident involved a Mercedes E200 and a Vauxhall Vectra. Police say the Mercedes left the road and smashed through the exterior wall of the family's home.

A number of people were seen fleeing the scene of the smash, and a 16-year-old male has been arrested for failing to stop at the scene of an accident.

The smash has shocked the community in Millfield, and comes as the area's Labour councillor, Kevin O'Connor, is campaigning for something to be done to stop speeding motorists using the streets as a rat-run.

One woman, who lives in neighbouring Rainton Street, said: "I heard cars coming along the street. They were racing each other. It looked like one was trying to overtake the other when it went into the house.

"I've not slept since 2.30am because I've been so worried. I saw people from the car run down the back lane. One of them was wearing white Bermuda shorts.

"I just couldn't believe it when I saw the state of the house. I thought the cars had just crashed into each other."

Another woman, who lives in St Mark's Road, said: "I was woken up by a load noise and lights flashing but I didn't get up to see what it was because I thought it was just another crash. There's been quite a lot here."

"I saw all the flashing lights but it wasn't until I went out into the street of the house. It's just shocking but it was so lucky it wasn't a lot worse. This road's an accident waiting to happen."