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In 2007-2008, the Land Registry paid out almost £4m in compensation to lenders and defrauded homeowners, compared to just over £2m in 2006-2007.

Speaking to channel 4 news, managing director, Disputes and Investigations, at Navigant Consulting, Paul Doxey said that as many as 60,000 properties in the UK could have been acquired with fraudulent loans.

He said: "There's been a complete explosion in mortgage fraud".

"There’s currently probably over £7bn pounds worth of fraudulent mortgages sitting on lenders' books. It could be much higher than that - as high as £17bn."

Doxey says the key factor is ID theft: "In the 80s and 90s we saw a lot of property fraud, but what's different in the recent frauds is the explosion of ID fraud.

"It's now a lot easier for criminals to obtain false IDs through the black market, which they can use as a cover for these frauds."

Fraud Lawyer Gary Miller of Mischon de Reya Solicitors, who helps lenders track down fraudsters, also told Channel 4 News: "My experience tells me that what we see is the tip of the iceberg".