Families were forced to leave their homes with their children after a group of around 20 masked men descended on the Drumnagoon area of Craigavon and re-erected union and Israeli flags that local residents had already removed.

The latest incident has sparked anger across the area over the open use by loyalist paramilitary gangs of flags to mark territory and intimidate people living in mixed communities.

Residents had previously removed the flags after raising concerns about their presence in what is widely regarded as a shared and integrated area. But on Sunday night the flags returned when a masked group entered the estate and put them back up.

Sinn Féin Councillor Catherine Nelson said local people had spoken of their concerns.

“Over the last 12 hours, residents from all backgrounds have contacted me with a clear and consistent message: Drumnagoon is a settled, mixed and integrated community, and these flags do not reflect the character of the area. Residents came together peacefully to remove them and protect that shared space.”

She said the impact on local families was severe.

“I am deeply concerned that some felt so intimidated that they left their home with their children. No families should feel forced from their home because of the intimidatory actions of a group.”

The events in Craigavon come against the backdrop of continuing loyalist flag disputes elsewhere. In east Belfast, UVF flags were recently erected beside a new housing development at the Woodstock and Beersbridge Roads, following the appearance of UDA flags in another part of the area only weeks earlier.

The displays are designed to mark territory and also to inspire fear in Catholics and immigrants.

The issue has become increasingly controversial as pressure grows on the PSNI and Stormont government departments to act.

In the past, loyalists have used mechanical lifting equipment to erect large numbers of flags along the Newtownards Road in Belfast while the PSNI kept watch.

Now, new legislation due to come into force before the end of June will give the PSNI powers to remove and destroy flags belonging to proscribed organisations.

This summer, loyalists have already hung unionist flags outside Lisburn PSNI station - a test for the new legislation and whether the complicity between the British state forces and unionist paramilitaries is indeed continuing.