The government has launched a High Court bid to close down six property firms it is concerned are exploiting "get rich quick" schemes.

Ministers are mounting a crackdown on large buy-to-let property schemes that fund the construction of high rise tower blocks.

The Department for Productivity, Energy and Industry moved on Wednesday against some of the firms involved, saying it was "very sceptical" about claims made by them.

The DPEI's Companies Investigations Branch is increasing its scrutiny of schemes that use expensive property seminars and syndicates to fund the construction of buy-to-let flats.

Often promoting themselves as helping people become property "millionaires", the seminars can charge fees of up to £6,000 alone.

The syndicates, which can cost tens of thousands of pounds to join, then build the flats for the rental market.

Extortion

Critics claim unscrupulous firms are both extortionate and give a misleading impression of how quickly returns can be made.

Concerns have been heightened by fears that the buy-to-let market is in decline, with the price of new flats having fallen in recent months.

Established firms in the industry have welcomed the move, with market leader Inside Track encouraging the government and the Financial Services Authority to expose "bad apples".

"The reputation of our own business has been damaged by association with the fly-by-night element of the sector and we're keen to see these opportunists regulated out of existence," chief operating officer Anthony McKay said.

The Association of Residential Letting Agents also said it was "delighted" by the development.

However the DPEI has said it has no plans to beef up regulation because it is happy with the powers it already has.