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Demand for homes in Birmingham has soared by two-thirds in a year – six times greater than the growth in supply.

The city has seen buyer registrations rise by 66 per cent since April 2013, despite the number of homes on the market only growing by 11 per cent in the West Midlands.

Meanwhile, the city is outstripping the region in rising house prices, with an 11 per cent annual rise, compared to eight per cent across the West Midlands, according to Shipways’ West Midlands Housing Market Index.

Ian Simmonds, area director at estate agent Shipways, said successes like bringing in Deutsche Bank and Skanska offices were boosting the city market.

He said: “The continuing surge of activity in the West Midlands property market is mirroring that of the º£½ÇÊÓƵ in general but the º£½ÇÊÓƵ’s second largest city is certainly leading the way.

“Birmingham has seen a 52 per cent rise in foreign direct investment in 2012 and 2013, securing more than 4,000 local jobs. Companies such as Deutsche Bank and Skanska have also chosen to open flagship offices in Birmingham and this has positively impacted property sales, which are up 35 per cent since April last year.”

He added: “Supply is increasing, up 11 per cent year on year, but it is not keeping up with the increase in demand. There are now over five potential buyers for every available property and it is this imbalance in demand and supply which pushing prices up by eight per cent annually.”

The number of people registering to buy a property in the wider West Midlands is also continuing to increase dramatically, with registrations up 54 per cent from this time last year. Mr Simmonds said the fact that wages are rising faster than inflation had boosted confidence.

However, the research draws obvious comparisons with the Government’s Help To Buy lending scheme, which is often criticised for increasing demand without dealing with supply.

The average house price in the West Midlands stands at £143,226 according to the data, up eight per cent across the year.

That compares to a º£½ÇÊÓƵ average of £214,124, up 12 per cent.

There has, however, been a sharper rise in housing transactions in the West Midlands – up 29 per cent year-on-year compared to the º£½ÇÊÓƵ average of 19 per cent.