Armed police raided a "charity hostel" after it became linked with gang crime.
The intelligence-led operation targeting members of the notorious Ghetto Boys gang was launched last Wednesday morning.
Police from Lewisham police's proactive gang disruption team Operation Trilogy were backed up by officers from the Met's specialist firearms unit CO19.
They burst into St Christopher's Fellowship home in Boyne Road, Lewisham, at around 2am and recovered two handguns capable of firing 13 rounds of ammunition, and a silencer.
Seven people were arrested.
Detective Inspector Sarah Davies, from Operation Trilogy, said: "Since the turn of the year Operation Trilogy has taken five guns off the streets, which can only make our communities safer."
The suspects, all aged under 26, are being quizzed at a South London police station and remain in custody.
In the weeks leading up to the raid, Boyne Road residents had complained of a "crime wave" in their formerly peaceful street.
They said it had changed drastically in the space of a month since some new youngsters had moved into the home, which is for young people who have been in care.
Speaking before the police operation, Boyne Road resident John Cameron said: "We are not out to oust St Christopher's. The deterioration started just before Christmas. Cars are being broken into, houses burgled and there are fights between the teenagers. We have a suspicion that there may be drug dealing going on."
Mr Cameron said he and a number of other residents had complained to St Christopher's because they were concerned about the safety of their children, as well as youngsters at St Christopher's who are not involved.
He added: "We are now building up the pressure on them to have a resident warden, but they say they do not have enough money. We all get the sense that St Christopher's is not listening to us."
A St Christopher's spokesman said: "We are liaising with the police and other statutory agencies regarding the antisocial behaviour in the area, and the police safer neighbourhood team is currently setting up a meeting with residents to ensure all concerns are addressed."
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