Fears for the immediate future of the West Midlands property market in the wake of the MG Rover collapse are being overdone according to housing experts.

The recent problems at MG Rover and the damaging knock on effects with the local supply chain have prompted one trade union leader to warn that the whole of the West Midlands are in danger of becoming ghost towns.

However many housing commentators argue that large parts of the region are in fact extremely robust, with Warwickshire in particular thriving due to the growth of high tech, design based industries that have produced a cluster of wealth in areas such as Kenilworth and Royal Leamington Spa.

The area went through an economic renaissance during the early 1990s following the opening of the M40 and the surrounding area is home to over 1000 technology based companies, including IBM, Aston Martin and Powergen. Unemployment at 1.3% is half the national average.

There are a number of business and technology parks on greenfield sites including Warwick Technology Park and Westwood Business Park. The University of Warwick is a centre of excellence with its Advanced Technology Centre and Science Park while Coventry University hosts the CU-adam lab which focuses on design innovation.

Bill Lloyd, Managing Director of Domus Estates, which is currently marketing William Thomas House (www.williamthomashouse.co.uk), a development in Leamington Spa’s conservation area said: "We’ve received hundreds of enquiries for our development and more than half from young, affluent professionals looking to relocate here from outside the region."

"You only have to look at the designer label shopping boutiques in Leamington Spa to see that there’s definitely a huge amount of spending power in this area."

Figures from property search website www.smartnewhomes.co.uk show that interest in this area has doubled in the last three years as the Greater London area sees a net migration over the same period.

David Bexon, Chief Executive of SmartNewHomes.com said, "Areas such as Leamington Spa are growing in popularity as people are attracted by a combination of factors. The location is very central and has ease of access to Birmingham and London whilst retaining a rural quality of life feel. The prestige and heritage of Spa towns also adds a premium."