After many attempts of trying to fix this issue, reinstalling the game, trying different graphics settings etc... I stumbled across the reason for this bug. It was down to Nvidia 3D drivers. I had them installed for my 3D TV. I uninstalled them and this removed the issue. Might be something to look into though as people won't be able to play this game in 3D with those particular drivers. ( 3D Vision 320.49 version ) This is quite a severe graphics issue at night.
But hope this helps anyone else that has been experiencing this problem as well.