The 14-year-old boy had been joyriding in a stolen Volkswagen Sharan at the time, when he reached speeds "well in excess" of 30mph, a court heard.

He was seen doing loops of the Sinfin area before he was pursued by police. He lost control of the car and smashed into the houses on Grampian Way.

The youngster, who cannot be named for legal reasons, was arrested at the scene of the crash at around 2.30am.

He sustained minor injuries and was taken to hospital as a precaution.

The teenager appeared at Southern Derbyshire Magistrates Court on Monday and pleaded guilty to aggravated vehicle taking without consent, and driving without a licence or insurance.

Prosecutor Emma Gilberthorpe said that the two semi-detached houses would need to be demolished after structural engineers assessed the damage.

Pedestrians were warned not go near the precarious buildings and traffic has been diverted.

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Ms Gilberthorpe said: "When he saw the police officer, [the boy] panicked.

"He did not know what to do and took his foot off the pedal and his hands off the steering wheel, and that is when he lost control.

"He said he was sorry and apologised for what he had done."

The boy, from Derby, has no previous convictions.

Defending lawyer Justin Ablott said: "The decisions this young man made are significant and serious.

"He knows he has behaved dreadfully over the course of the weekend."

The hearing was adjourned with the boy due to appear in court for sentencing on 31 March.