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I read about this in The Times http://www.timesonline.co.uk/tol/news/uk/article1890354.ece and it's hard for me to believe as I live in a very white area full of traditional English names. (The Times article says much the same thing by the way, but with a little more detail.)

I can well believe that. I live in a predominantly Muslim area, and I also help out in two primary (elementary) schools in the area, so I meet a lot of young kids. I've met so many little Mohammeds since I moved here!
I also heard somewhere that Mohammed/ Mohammad etc, when all spellings are combined, is the #1 name for males in the world. I don't know if there's any evidence to support that, though.