A psychic was paid £60 by a council to rid a County Durham home of a "poltergeist" after ghostly goings-on.
Sabrina Fallon said the ghostly resident has gone
Easington Council employed medium Suzanne Hadwin after Peterlee tenant Sabrina Fallon reported paranormal activity including moving objects.
Miss Fallon had even called police after hearing bangs which terrified her children Shannon, nine, and Amie, one.
A council spokesman said it paid half the psychic's fee as it was the most cost-effective solution.
Andrew Burnip, the council's homelessness and housing advice manager, said the family had been left "traumatised" by the strange goings on and wanted to leave the house.
The council considered rehousing the family in temporary accommodation but this would have cost up to £40 per night.
Miss Fallon said the spirit had now gone and the house had a "lovely atmosphere".
She said: "It all started before Christmas. We were away and my sister's husband had the keys.
"He let himself in one night and heard whispering and banging from upstairs. He shouted out: 'You better get out or I'm calling the police.'
"He said my dressing gown then came floating down the stairs and landed at his feet.
"He ran out and rang me crying like a girl saying something awful had happened - I thought he was drunk, but when we came back we heard the bangs and whispering."
Medium Suzanne Hadwin performed an exorcism
Mr Burnip said: "This family was absolutely distraught and believed what was happening - that is not to say that the council believed.
"What we saw was a relatively small amount to pay for an outcome which in effect saved the taxpayer many hundreds, if not thousands of pounds."
Medium Ms Hadwin said she used her "gift" to isolate the spirit in one room and then exorcise it from the house.
"I went into the house and there was a horrible atmosphere," she said.
"I could feel the entity around all the time. He was bombarding the house and the whole family - they were terrified.
"I put down a circle of salt, asked the family to be present and I have now sent him on his way."