Property prices in London are at an all time high and there is talk of an imminent crash. But will the bubble simply deflate a little? Who knows.

But what is certain is that more and more investors seem to be turning to the UK’s second city for investment opportunities. The barrier to entry is much lower and so too is the risk.

While average property prices in London are now over 40% higher than pre-crisis levels some areas of Birmingham are still 2% below. Will areas like Smethwick in Birmingham’s west and Bordesley in the East become new investment hotspots ?

The average property price in the West Midlands rose by almost £5,000 last month to £204,140 according to Rightmove.

This represents an annual change of 5.5% or around £11,000, which is more than any other region in the UK outside the East, South East & South West.

Meanwhile in London it looks as though property prices may have hit their peak and could be heading for a decline after a last minute rush in March to beat the governments stamp duty hike. Rental yields in London are tiny compared with the 8%+ yields still available for single let properties in Birmingham.

Birmingham unveiled a 20 year improvement proposal in 2010, using private & public funding, and there is already evidence that many regeneration projects are well under way.

Birmingham was once regarded as a city most would either bypass or avoid. A place of crumbling, derelict buildings and ring roads. Some areas of the city designated as a “no-go”. Not so much any more.

According to a report by Marion Dakers of The Telegraph figures from the Office Of National Statistics show that there is a rising number of young people leaving London and heading North & West.

Marion explains the figures are based largely on NHS registrations and probably reflect only a fraction of the real number. Bristol was the second favourite destination, followed by Manchester, Nottingham and Oxford. But topping the table was Birmingham.